According bitcoin/” target=”_blank” rel=”nofollow”>CoinMarketCap databitcoin rose 2.9% on Friday to trade above $67,000 for the first time since April 24. This positive price performance of the inaugural cryptocurrency has been attributed to the low levels of inflation reported in the latest Consumer Price Index (CPI) data.
However, bitcoin is an asset subject to the influence of several forces. According to a report from blockchain analytics platform LookonChain, btc could soon experience another price rally following an increase in the supply of a specific stablecoin.
Can USDT replicate bitcoin's rising effect?
in a x.com/lookonchain/status/1791350139451478418″ target=”_blank” rel=”nofollow”>x publication On Friday, LookonChain reported that the Tether Treasury has minted an additional 1 billion USDT, indicating steadily growing demand for the stablecoin. Ranking as the third largest cryptocurrency, USDT is also the most dominant stablecoin in the crypto space with a market capitalization value of $111.25 billion.
The USDT token has seen huge growth in the last year with over 31 billion new tokens minted on the Tron and ethereum networks. Interestingly, LookonChain reveals that this increase in USDT market share contributed significantly to bitcoin's rise from $27,000 to $73,000 in the last fifteen months.
The theory behind this relationship arises from an increase in traders' liquidity provided by USDT investments. This increase in market liquidity can alter the state of bitcoin supply and demand and often cause an increase in the price of btc.
Following the most recent billion USDT minted by the Tether Treasury, most investors and spectators could expect a similar momentum effect on the price of bitcoin, especially with the cryptocurrency bull season in play.
However, the price of bitcoin in the coming months is likely to still be influenced by other factors, such as the btc spot exchange-traded fund (ETF) market. According btc-spot” target=”_blank” rel=”nofollow”>SoSoValue data, Net inflows on Friday reached $177.01 million, bringing the total value of the bitcoin spot ETF market to $12.58 billion. As bitcoin-etf-position-exposed/” target=”_blank” rel=”nofollow”>More major traditional financial players To gain a piece of this novel market, bitcoin is expected to experience monumental levels of demand that will result in significant price increases.
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btc Price Overview
At the time of writing, bitcoin was trading at $66,853, reflecting a 9.64% gain over the past week. The cryptocurrency market leader is currently in a state of consolidation as it gains momentum to break through the 67,000 resistance zone.
bitcoin is likely to remain the “diamond” of the cryptocurrency bull season for many investors based on historical price data. However, it is still necessary for all investors and traders to do proper research before entering the market.
Featured image from The Independent, chart from Tradingview
