Bitcoin

Tether’s USDT (<a href="https://cointelegraph.com/tether-price-index">USDT</a>), the world’s largest stablecoin, has minted another $1 billion, bringing its market capitalization above $110 billion, which could catalyze Bitcoin’s (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) next move to new all-time highs.
<h2 id="will-more-usdt-boost-bitcoin-s-price">Will more USDT boost Bitcoin’s price?</h2>
Tether’s treasury has minted $1 billion worth of USDT during the past 24 hours, bringing its yearly total to $31 billion.
The newly minted USDT was a big reason why Bitcoin price climbed from $27,000 to $73,000, according to a May 17 <a href="https://x.com/lookonchain/status/1791350139451478418" target="_blank" rel="noopener nofollow">post</a> from Lookonchain:
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/379b6a02-9587-43c2-96ff-02442e84e3df.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin chart with newly-minted USDT. Source: Lookonchain
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Tether could also directly contribute to Bitcoin’s rally. The company said it would invest 15% of its net profit in Bitcoin to diversify the stablecoin’s backing assets.&nbsp;
<a href="https://cointelegraph.com/news/tether-boosts-bitcoin-reserves">Tether acquired 8,888 BTC</a>&nbsp;on March 31,&nbsp;worth $618 million, making the stablecoin issuer the seventh-largest Bitcoin holder in the world, according to <a href="https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html" target="_blank" rel="noopener nofollow">Bitinfocharts</a>. Tether’s wallet currently holds over 78,317 BTC, worth over $5.18 billion, one year after announcing its plan to diversify into Bitcoin.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/d40d3e9f-470e-476a-8d35-f62de1cf245d.jpeg" alt="" title="">
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 Tether USDT, market cap, all-time chart. Source: CoinMarketCap
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Meanwhile, Bitcoin’s price action is still largely dependent on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). The United States Bitcoin ETFs saw their second week of net positive outflows, amassing over $200 million worth of cumulative net flows so far, according to Dune.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/b3a84612-e9d5-4107-a1a5-ac35ad43d62b.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF net flows, weekly, in dollars. Source: Dune
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Institutional inflows from ETFs were a significant part of the current Bitcoin rally to new all-time highs. By Feb. 15, <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment">Bitcoin ETFs accounted for about 75%</a> of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
Related: <a href="https://cointelegraph.com/news/m2-money-supply-bitcoin-cycle-market-analyst">M2 money supply ‘holds the key’ for Bitcoin’s next move — Market analyst</a>
<h2 data-ct-non-breakable="true" id="bitcoin-breakout-confirmed-daily-chart">Bitcoin breakout confirmed — daily chart</h2>
Bitcoin’s price action has confirmed May 16’s breakout on the daily chart, where the $65,000 mark seems to act as a strong support for BTC, according to <a href="https://www.tradingview.com/chart/3Z94myyP/?symbol=BITSTAMP%3ABTCUSD" target="_blank" rel="noopener nofollow">TradingView</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/2bc1cc97-ff89-44b6-9f55-21f733e78a83.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT, breakout on 1-day chart. Source: TradingView
 </figcaption>
</figure>
Another bullish sign for investors is that Bitcoin has <a href="https://x.com/rektcapital/status/1791030706010747213/photo/1" target="_blank" rel="noopener nofollow">flipped</a> its old resistance into support on the monthly chart, according to a May 16 X post by popular crypto analyst Rekt Capital.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/46ad5b24-d9a8-4de4-b141-3153bfcf8db5.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD, 1-month chart. Source: Rekt Capital
 </figcaption>
</figure>
However, Bitcoin could still see a temporary correction to below $63,500 before reclaiming the $70,000 psychological mark, according to the artificial intelligence-based predictions algorithm of ScorehoodAI, which <a href="https://x.com/ScorehoodAI/status/1791088623544082899" target="_blank" rel="noopener nofollow">wrote</a> in a May 16 X post:
<blockquote data-ct-non-breakable="true">
 “Now it is time for a temporary pull-back to around $63,000 - $63.500 for Bitcoin! As we reclaimed $65,000 and are on the the way to $70,000+, this will be a healthy pullback for liquidating high-leveraged greedy traders!”
</blockquote>
A Bitcoin correction to below $63,500 would <a href="https://www.coinglass.com/pro/futures/LiquidationMap" target="_blank" rel="noopener nofollow">liquidate</a> over $1.76 billion worth of cumulative leveraged long positions, according to Coinglass data. Liquidations would reach $1.87 billion under the $63,000 mark.
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/d158a619-9a8e-4e5e-bb90-abbe6a60a68d.png">
 <figcaption style="text-align: center;">
 Bitcoin exchange liquidation map. Source: Coinglass
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/crypto-trader-46m-3k-pepe-price-soars">Crypto trader turns $3K into $46M in one month as PEPE price soars</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Tether mints another $1B — Last time, it helped Bitcoin climb to $73K

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