Bitcoin’s next surge to new all-time highs may have found its catalyst with the minting of an additional $1 billion worth of USDT by Tether’s Treasury. This move has pushed Tether’s market cap over $110 billion, solidifying its position as the largest stablecoin in the world.
Over the past 24 hours, Tether’s Treasury has minted $1 billion worth of USDT, bringing the total amount minted this year to $31 billion. It is believed that this influx of newly created USDT played a significant role in Bitcoin’s price surge from $27,000 to $73,000, as reported by Lookonchain on May 17.
Tether has also committed to diversifying its stablecoin’s backing assets by investing 15% of its net earnings into Bitcoin. This move is expected to directly contribute to Bitcoin’s surge in value.
In fact, Tether became the seventh-largest Bitcoin holder in the world on March 31 after acquiring 8,888 Bitcoin worth $618 million. Since announcing its intention to diversify into Bitcoin a year ago, Tether’s wallet now holds over 78,317 BTC, valued at more than $5.18 billion.
The investments into spot Bitcoin exchange-traded funds (ETFs) have also played a significant role in influencing Bitcoin’s price. According to Dune, the net positive outflows from U.S. Bitcoin ETFs have continued for a second week.
The institutional inflows from ETFs have been a crucial component of Bitcoin’s recent surge to new all-time highs. When the price of Bitcoin surpassed $50,000 on February 15th, ETFs absorbed approximately 75% of the fresh capital inflow.
Furthermore, Bitcoin’s price movement has confirmed the $65,000 level as a significant support, reinforcing yesterday’s breakthrough on the daily chart.
In other news, Solana (SOL) has experienced a 25% surge in May, driven by the frenzy surrounding meme coins.