Tether's CEO Admits USDT as the Catalyst Propelling Bitcoin's Propulsion
In a significant development, Tether's supply has grown by approximately 12.5% over the past month, reaching a staggering $135 billion. This growth, according to Tether CEO Paolo Ardoino, can be attributed to capital inflows into spot Bitcoin ETFs and significant purchases of Bitcoin by institutional players such as MicroStrategy.
Over the past 20 days, Tether's stablecoin, USDT, has seen an increase in supply, resulting in a market capitalization growth of approximately $16 billion. The company named Tether holds the largest amount of USDT in their possession.
The surge in Tether's supply is not the only indication of a bullish market. Bitcoin's price has surpassed the $100,000 mark, marking a nearly 49% increase over the last 30 days, according to CoinGecko. This price increase is attributed by Tether CEO Paolo Ardoino to liquidity injections from traditional finance into crypto trading.
MicroStrategy, a company led by Michael Saylor, recently acquired an additional 15,400 BTC for about $1.5 billion, bringing its total Bitcoin reserves to 402,100 BTC. The IBIT fund from BlackRock now holds over 500,000 BTC, further highlighting the growing interest of traditional financial institutions in cryptocurrencies.
However, it's not just Tether and Bitcoin that are seeing growth. According to SoSoValue, U.S.-based ETF issuers collectively own 5.54% of Bitcoin's total supply. Meanwhile, Circle's USDC supply has increased, but its market capitalization remains significantly smaller than Tether's.
In a move to streamline operations, Tether has decided to discontinue support for its euro-pegged stablecoin EURT due to low demand and stricter regulations in the EU. This decision underscores the challenges faced by stablecoin issuers in navigating the complex regulatory landscape.
As the cryptocurrency market continues to evolve, it's clear that institutional investment and regulatory developments will play a crucial role in shaping its future. With the price of Bitcoin reaching new highs and Tether's supply growing rapidly, it's an exciting time for cryptocurrency enthusiasts and investors alike.
