Tether Announces Issuance of Additional USDT Leading to $110 Billion Market Cap
Tether, the largest stablecoin issuer of USDT, has announced the issuance of an additional billion coins, leading to an increase in its market capitalization to over $110 billion. This move could have a significant impact on the cryptocurrency market.
New USDT Could Act as Catalyst for Bitcoin Growth
Analysts at the Lookonchain platform believe that the new USDT could act as a catalyst for Bitcoin growth. Previously, after the issuance of additional USDT, the Bitcoin price was able to reach a record level of $73,000, and the new coins could also support further growth.
Tether Announces Investment Plans in Bitcoin to Diversify Reserves
Additionally, Tether representatives have announced their intention to invest 15% of their net profit in Bitcoin to diversify the stablecoin’s reserves. In March, the company acquired 8,888 bitcoins worth $618 million, making it the seventh largest Bitcoin holder in the world. Currently, Tether’s balance sheet holds over 78,317 BTC, valued at over $5.18 billion.
Bitcoin Price Supported by Institutional Investments in Spot BTC-ETFs
The current Bitcoin price dynamics are also supported by institutional investments in spot BTC-ETFs. According to the analytical platform Dune, these exchange-traded funds have been showing positive dynamics for the second consecutive week. Over the past week, Bitcoin has risen by almost 11% and is currently trading above the $67,000 mark.
Therefore, the recent increase in Tether’s market capitalization and its investment plans may have an additional impact on the market, contributing to further price increases for Bitcoin.
