- Whale Alert reports $1 billion in Tether (USDT) minted in April. BTC price responds with a 23% increase during the month.
- Tether market capitalization (USDT) increases to $7.14 billion and will soon overtake Ripple (XRP).
Whale Alert, the monitor of large transactions on the crypto space, has reported all Tether transactions of the Treasury during April. This month alone, according to Whale Alert, Tether’s Treasury has minted about $1 billion in USDT. At the time of publication, Tether’s market capitalization is $7.14 billion, but the stablecoin reached for the first time a market capitalization of $7.5 billion in April.
Bitcoin price increase during April
USDT issuance has been pointed out as a possible indicator of the trend, bullish or bearish, that Bitcoin will take. Although there is no consensus on the possible influence of the USDT issue on the price of Bitcoin, the cryptocurrency has shown a big rebound over the past few weeks, after falling to an annual low during March.
At the time of publication, BTC trades of $7,736 with gains of 0.51% in the last 24 hours. In the weekly and monthly charts, however, the possible correlation between the printing of USDT and BTC price can be better appreciated. Over the past week, BTC has made gains of 12.90% and 23.76% over the month.
In a few days, Bitcoin halving will occur, reducing mining rewards from 12.5 BTC to 6.25 BTC. For this reason, there may be an increase in Tether’s issuance as new investors enter the market using the stablecoin, USDT, to buy BTC and other cryptocurrencies. A report by the research firm Glassnode seems to confirm this hypothesis. According to Glassnode, investors have been accelerating their accumulation of BTC before the halving. The level of accumulation is similar to that reached in 2016, just prior to that year’s halving.
The Whale Alert monitor recorded two movements from Tether Treasury a few hours ago, for 240 million USDT. Tether’s CTO, Paolo Ardoino, said that this recent transactions are in response to a replenishment of inventory. Therefore, the newly minted USDT should not have entered the market yet:
PSA: 120M USDt inventory replenish. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.