The Bitcoin (BTC) price spikes two percent as Tether prints $120 mln USDT to address future demand
Flagship stablecoin issuer Tether has minted $120 mln more of its USDT stablecoin to replenish its inventory, which means that it anticipates even more demand.
As explained by Tether and Bitfinex CTO Paolo Ardoino, the new batch of coins will be used for future issuance requests.
The flight to Tether
Tether, along with a batch of other stablecoins, has thrived during the coronavirus crisis, with its market cap recently surpassing $7 bln.
As reported by U.Today, USDT recently became the third-biggest cryptocurrency, edging out XRP, according to OnChainFX data.
After the March 12 market crash, investors rushed to fiat-pegged cryptocurrencies to hedge themselves against wild volatility. Since then, the stablecoin market has swelled to more than $8 bln (almost doubling in the span of two months).
The fact that billions worth of stablecoins are presumably waiting to enter the market is one of the bullish Bitcoin narratives as of now.
Bitcoin pumps two percent
Because of a study conducted by finance professors John Griffin and Amin Shams, tongues have been waggling that Tether is an omnipotent force in the crypto industry that can manipulate the Bitcoin price at a whim.
This resulted in a class-action lawsuit against the company, but Tether vehemently denies the accusations thrown by its detractors.
While freshly minted USDT is yet no enter the market, its issuance recently coincided with a two percent price uptick. However, it is unclear whether it was the Tether news that painted BTC green.
Is $6,500 on the cards
However, the recent price increase might not be enough for Bitcoin to…