Bitcoin Rallies on USDT Firehose: Stablecoin Printer Goes Brrr, Markets Follow

Another day, another nine-figure Tether mint—and Bitcoin bulls are feasting. The crypto king surged 8% in 24 hours as whale-sized USDT issuances hit exchanges, proving once again that liquidity trumps fundamentals in this market.

When the stablecoin spigot opens, altcoins get their rain dance ready. Traders are piling into leveraged longs, betting this artificial liquidity wave will float all boats (until the next 'risk-off' tantrum, of course).

Wall Street analysts remain baffled while crypto natives shrug—after seven years of this cycle, everyone knows the drill. Just don't ask about reserve audits while the party's still going.

$107,169 soared to an all-time high by surpassing the 111,000-dollar mark the next day. The recently injected liquidity, happening right before the May Consumer Price Index (CPI) release in the US, could reignite risk appetite in the markets. The daily trading volume increased by 18% to 41 billion dollars, and open positions climbed to 73.5 billion dollars, supporting a positive outlook.

ContentsTether’s USDT Issuance as a Catalyst for Bitcoin GrowthLiquidity Boosts Support Price Rally

Tether’s USDT Issuance as a Catalyst for Bitcoin Growth

Since the beginning of the year, Tether has issued a total of 16.7 billion USDT on the Tron and Ethereum$2,528 networks. Experts highlight that significant USDT issuances have historically preceded rapid upward movements in Bitcoin’s value. For instance, between April 23 to May 7, 6 billion USDT was issued consecutively, paving the way for bitcoin to surpass the 100,000-dollar level for the first time in three months. Furthermore, a new issuance of 2 billion USDT on May 15 propelled BTC beyond the 105,000-dollar threshold.

This time, the timing of the liquidity injection is particularly noteworthy, as it occurred days before the release of US May inflation data. Investors speculate that lower-than-expected inflation figures could bolster expectations of monetary easing, accelerating the flow of newly minted USDT into riskier assets.

Liquidity Boosts Support Price Rally

In addition to Tether’s move, Strategy Board Chairman Michael Saylor hinted on the X platform that he might announce a new Bitcoin acquisition on Monday. Analyst Rekt Capital suggests that the combination of institutional demand signals and the issuance of 1 billion USDT could stabilize Bitcoin’s dominance rate at 64% and potentially elevate it to 71%. Should this bullish scenario materialize, the largest cryptocurrency by market cap could soon exceed its last peak of 111,000 dollars.

Moreover, for the last two weeks, Bitcoin has been trading sideways at the 105,000-dollar level. A breakout depends on the demand for fresh stablecoin supply and macroeconomic data influencing risk perceptions. Conversely, unexpected CPI data might delay the anticipated rally. Nevertheless, the liquidity surplus could act as a significant buffer, limiting potential pullbacks.

Based on current data, Bitcoin is trading above the 107,000-dollar threshold at 107,205 dollars, marking a 1.77% increase over the last 24 hours.

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