Although uncertainty exists, BTC and ETH price could rebound next.
Tether minted 1 billion USDT today, as the crypto market witnesses turmoil with the FOMC meeting and the ongoing geopolitical issues.. With a billion worth of liquidity entering the market, investors anticipate positive results on the cryptocurrency prices. Interestingly, experts also highlight that this event could influence BTC and ETH price. Why? Let’s discuss.
Why did Tether Mint 1 Billion USDT?
Whale Alerts X post revealed that the Tether minted 1 billion USDT on Ethereum on June 18. This is part of USDT’s issuer’s broader plan and has increased this stablecoin’s total supply to 157.05B.
Since November 6, 17 billion USDT have been minted on Ethereum and Tron, and aim to provide additional liquidity in the crypto market.
Further reports also reveal that out of these 1 billion, $225.36 million was sent to Bitfinex, a Tether-affiliated exchange.
BTC Price Historical Correlation to USDT Minting
Lookonchain X post and historical data show that Bitcoin has reacted bullishly to the USDT minting news. On May 21, Tether minted $2B tokens, and just a day after that, Bitcoin price hit a new ATH past the $111k mark.
Blockchain Research Lab findings also reveal that Bitcoin tends to rise 0.4-0,8% right after minting. This surge is due to its impact on the investors’ sentiments and FOMO building due to liquidity changes.
Will BTC and ETH Price Rally Next?
Bitcoin and Ethereum tokens’ prices are struggling amid the broader crypto market correction. BTC is currently trading at $105k, whereas ETH is down to $2.5k, fueled by the FOMC meeting and geopolitical tension.
Although experts predict that the Fed would keep the interest rate unchanged, there’s a slight possibility that the BTC and ETH price could react positively.
Moreover, the clarity on the Israel-Iran conflict could help. Besides, the minted Tether token also influences the investors’ sentiments. If bullish momentum forms, the crypto market could see a significant uptrend.
