Tether's CEO Confirms USDT as the Primary Driver of Bitcoin's Price Resurgence
In a remarkable turn of events, Tether's market capitalization has witnessed a significant surge, reaching an impressive $135 billion. This growth can be attributed to the conversion of massive inflows into USDT, the stablecoin issued by Tether.
Over the past month, Tether's supply has grown by approximately 12.5%. This increase mirrors the nearly 49% rise in Bitcoin's price over the same period, according to CoinGecko. Bitcoin's price has breached the $100,000 mark, a milestone in the cryptocurrency world.
The liquidity injection from traditional finance into crypto trading has been a key factor in Bitcoin's price increase, and by extension, Tether's growth. Institutional players like MicroStrategy have played a significant role in this trend. MicroStrategy recently acquired an additional 15,400 BTC for about $1.5 billion, bringing its total Bitcoin reserves to 402,100 BTC.
However, the growth of Tether's supply is not solely due to significant purchases of Bitcoin by MicroStrategy and other institutional players. Capital inflows into spot Bitcoin ETFs have also contributed to the surge in USDT supply.
Interestingly, the market capitalization of Circle's USDC, another stablecoin, remains significantly lower than that of Tether. Despite USDC's supply increasing by nearly 14%, its market capitalization still lags behind Tether's at $40.4 billion.
The IBIT fund from BlackRock now holds over 500,000 BTC, further highlighting the increasing interest of traditional finance in cryptocurrencies. U.S.-based ETF issuers collectively own 5.54% of Bitcoin's total supply, another testament to this trend.
However, recent public data does not specify which institutions have acquired significant amounts of USDT or their proportion of total USDT market capitalization.
In other news, Tether has decided to discontinue support for its euro-pegged stablecoin EURT due to low demand and stricter regulations in the EU. This move is expected to further consolidate Tether's market position.
Over the past 20 days, Tether's market capitalization has grown by approximately $16 billion, a clear indication of the growing confidence in Tether and the broader cryptocurrency market. As the crypto market continues to evolve, it will be interesting to see how Tether's growth trajectory unfolds in the coming days.
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