Bitcoin has seen a positive increase in price recently, rising by 2.9% to trade above $67,000 for the first time since April 24. This surge has been tied to the low inflation levels reported in the latest Consumer Price Index (CPI) data, indicating a positive price performance for the leading cryptocurrency.
A report by blockchain analysis platform LookonChain has suggested that Bitcoin may experience another price rally due to an increase in the supply of a specific stablecoin. The Tether Treasury has minted an additional 1 billion USDT, signaling a growing demand for the stablecoin. With USDT being the third largest cryptocurrency and the most dominant stablecoin in the market, this supply increase could have a significant impact on Bitcoin’s price movement.
The rise in USDT market share has played a crucial role in Bitcoin’s price surge from $27,000 to $73,000 over the past fifteen months. This growth is attributed to the liquidity provided by investments in USDT, which can influence the supply and demand dynamics of Bitcoin, leading to price appreciation. With the recent minting of 1 billion USDT by the Tether Treasury, many are expecting a positive effect on Bitcoin’s price, especially during the current crypto bull season.
While stablecoin supply is a significant factor affecting Bitcoin’s price, other forces such as the BTC spot exchange-traded fund (ETF) market also play a crucial role. Data from SoSoValue indicates that net inflows on Friday reached $177.01 million, bringing the total value of the Bitcoin spot ETF market to $12.58 billion. As more traditional finance players enter this market, Bitcoin is poised to see a surge in demand, resulting in substantial price gains.
As of the latest data, Bitcoin is trading at $66,853, representing a 9.64% gain in the last week. The cryptocurrency is currently in a consolidation phase as it prepares to break through the $67,000 resistance level. Based on historical price data, Bitcoin is expected to retain its position as the leading asset during the ongoing crypto bull season, attracting investors seeking lucrative returns.
Leave a Reply