Bitcoin’s price surged by 2.9% on Friday, surpassing $67,000 for the first time since April 24. This upward movement is primarily attributed to the low inflation levels reported in the latest Consumer Price Index (CPI) data. However, Bitcoin’s price is influenced by various factors, one of which could be the increased supply of a specific stablecoin.
According to a report by blockchain analysis platform LookonChain, the recent minting of 1 billion USDT by the Tether Treasury could potentially trigger another price rally for Bitcoin. USDT is currently the third-largest cryptocurrency and the most dominant stablecoin in the market with a market cap value of $111.25 billion. The increased market share of USDT has been linked to Bitcoin’s price surge from $27,000 to $73,000 in the past fifteen months.
The influx of USDT tokens provides traders with increased liquidity, potentially affecting the supply and demand dynamics of Bitcoin. This surge in market liquidity often leads to a rise in Bitcoin’s price. With the recent minting of 1 billion USDT by the Tether Treasury, investors are optimistic about a positive impact on Bitcoin’s price, especially during the ongoing crypto bull season.
While stablecoin demand plays a significant role in Bitcoin’s price movement, other factors such as the Bitcoin spot exchange-traded fund (ETF) market also influence its price. Data from SoSoValue indicates that net inflows into the Bitcoin spot ETF market reached $177.01 million on Friday, totaling $12.58 billion. As more traditional finance players enter the Bitcoin ETF market, the demand for Bitcoin is expected to surge, leading to substantial price gains.
As of the latest data, Bitcoin is trading at $66,853, marking a 9.64% gain in the past week. The cryptocurrency is currently in a consolidation phase as it prepares to break through the $67,000 resistance level. Given historical price data, Bitcoin is likely to maintain its status as the “diamond” of the crypto bull season, attracting interest from various investors.
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