Tether, the issuer of the largest stablecoin, has minted over $1.3 billion in USDT since the market bottomed on August 5. This influx of newly minted stablecoins suggests that investors are gearing up to capitalize on lower prices, potentially signaling a buying spree.
Tether’s Recent Activity
Since August 5, Tether’s Treasury has created more than $1.3 billion in USDT, which has since been transferred to major centralized cryptocurrency exchanges (CEXs) like Kraken, Coinbase, OKX, and Bullish. According to an August 9 post by Lookonchain, these significant inflows of stablecoins could indicate increased buying pressure, as stablecoins often serve as the gateway for fiat currency entering the crypto market.
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Is the Local Crypto Market Bottom In?
After a sharp $510 billion sell-off in the cryptocurrency market, many are wondering if the market has found its bottom. Bitcoin hit a five-month low of just above $49,500 on August 5 but has since rebounded by over 21%, trading at $60,271 as of 10:44 am UTC. The recent market recovery, alongside the $1.3 billion USDT minted, suggests that investors believe the market has hit a local bottom and are preparing to buy.
Bitcoin’s next challenge lies in reclaiming the critical $64,000 to $65,000 price range, which is considered the “realized price” for short-term whale holders—large entities holding significant amounts of Bitcoin. This range is currently acting as a resistance level. If Bitcoin can break through this barrier, it could signal a new upward trend. However, failure to do so may result in continued volatility.
