Tether mints new 60,000,000 USDT tokens in a response to the market’s ongoing decline as we are reading further in the latest Tether news. Usually when Tether mints new tokens, the crypto market experiences volatility surge as we are reading further.
The Tether printer became active during the Bitcoin market crash and the last tranche created another 60 million USDT which didn’t cause immediate spikes as it did before in the past. The new 60M tranche is also smaller in comparison with the already bloated USDT supply. The co-founder of Primitive crypto Dovey Wan believes this intervention is the same as ‘’printing money out of thin air.’’ The newly printed USDT was also noted leaving the treasury wallet of Tether and entering the crypto ecosystem.
The treasury is also ready to release the coins anytime now and previously even Binance held the biggest USDT wallet but now the Treasury is the biggest holder. The coins can leave the central wallet and add more liquidity to the markets but it can also retire the coins if it’s necessary. So far this year, the USDT supply has expanded further. Despite the printing of new Tether tokens, USDT also diminished the trading volumes to around $47 billion per 24 hours which was down from the peaks near $60 billion per day. The leading stablecoin was one of the major factors in spot trading but it is now entering into futures as in the case of the USDT-settled futures on OKEx so now more tether tokens have been issued on the Ethereum network.
Based on all of the turnover statistics, the USDT token now goes through the trading ecosystem about 10 times each day which is a level of activity that is matching the peak trading action. Printing new USDT since the beginning of 2019 leads to significant growth in altcoin volumes but to Bitcoin’s volume as well. The latest printing of new USDT token accelerated in the past and revived the narrative that the BTC price discovery is dependent on the manipulative trading. The more liquidity helped to boost the markets up to 71 percent of all BTC trades that now happen against USDT, up by more than 60 percent in the past few weeks.
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