According to data from CoinMarketCapBitcoin rose 2.9% on Friday, reaching above $67,000 for the first time since April 24. This positive price performance for this maiden cryptocurrency has been attributed to the low levels of inflation recorded in the latest Consumer Price Index (CPI) data.
However, Bitcoin is an asset influenced by several forces. According to a report by analytical platform LookonChain, BTC may soon experience another price boost due to an boost in the supply of a particular stablecoin.
Can USDT replicate the growth effect on Bitcoin?
In Post X on Friday, LookonChain reported that Tether Treasury has issued an additional 1 billion USDT, indicating steadily growing demand for the stablecoin. USDT, which is the third largest cryptocurrency, doubles as the most dominant stablecoin in the crypto space, with a market value of $111.25 billion.
The USDT token has seen significant growth over the past year, with over 31 billion novel tokens minted on the Tron and Ethereum networks. Interestingly, LookonChain reveals that this boost in USDT market share has significantly contributed to the price boost of Bitcoin from $27,000 to $73,000 over the last fifteen months.
The theory of this relationship is due to the boost in trader liquidity provided by investing in USDT. This increased market liquidity can change the supply and demand state of Bitcoin and often lead to an boost in the price of BTC.
Following Tether Treasury’s latest $1 billion USDT minting, most investors and viewers can expect a similar surge in Bitcoin prices, especially as the cryptocurrency season continues.
However, other factors, such as the BTC cash ETF market, will still likely influence Bitcoin’s price in the coming months. According to data from SoSoValue, net inflows on Friday reached $177.01 million, bringing the total value of the spot Bitcoin ETF market to $12.58 billion. How more major established financial players gain a share of this novel market, Bitcoin is expected to experience monumental levels of demand that will translate into significant price increases.
BTC price overview
At the time of writing, Bitcoin is trading at $66,853, reflecting a gain of 9.64% in the past week. The cryptocurrency market leader is currently in a state of consolidation as it gains momentum to break the 67,000 resistance zone.
Bitcoin is likely to remain the “diamond” of the cryptocurrency season for many investors, based on historical price data. However, there is still a need for all investors and traders to conduct proper research before entering the market.
Featured image from The Independent, chart from Tradingview
