Tether (USDT-USD) has recently minted a staggering $1.3 billion worth of USDT since the market hit its lowest point on August 5. This massive creation of stablecoins is stirring up speculation: Could it be the key to pushing Bitcoin (BTC-USD) above the crucial $65,000 mark?
Tether’s $1.3 Billion Boost
According to an August 9 post by Lookonchain, this $1.3 billion in USDT has flowed into major exchanges like Kraken, Coinbase (COIN), and OKX. Large stablecoin transfers like these often hint at increased buying pressure. “Large stablecoin inflows to crypto exchanges could signal incoming buying pressure,” Lookonchain notes. This is because stablecoins are the bridge between traditional money and cryptocurrencies, giving investors the means to buy in during market dips.
Bitcoin’s Recovery: A Glimmer of Hope?
Bitcoin, which bottomed out at just above $49,500 on August 5, has since surged over 21%, trading around $60,271. But to really make a mark, Bitcoin needs to break through the $64,000 to $65,000 range, a key resistance level identified by CryptoQuant. “The short-term holder whale realized price is in the 64K-65K range,” CryptoQuant stated on August 9. This level is important for large Bitcoin holders and might act as a barrier.
ETF Inflows Add Fuel to the Fire
Adding another piece to the puzzle, U.S. Bitcoin ETFs saw positive inflows of $194 million on August 8, according to Farside Investors. Historically, ETFs have played a major role in driving Bitcoin’s price up. For instance, they accounted for about 75% of new Bitcoin investments earlier this year when Bitcoin broke the $50,000 threshold.
What Is BTC’s Price Today?
At the time of writing, Bitcoin is sitting at $60,401.
