Tether’s decision to mint an unprecedented amount of USDT over a short period has sparked intense speculation about the potential impact on Bitcoin’s price.
Experts are closely monitoring this development. Indeed, historical patterns suggest a strong correlation between Tether’s minting actions and notable upswings in the price of Bitcoin.
Tether Mints 2 Billion USDT: Potential Bitcoin Price Reaction
Tether has minted a staggering 2 billion USDT within a mere span of 10 days. This development comes on the heels of a recent minting of 1 billion USDT. Therefore, it marks a significant increase in the issuance of this prominent stablecoin.
Historically, such substantial minting events of Tether (USDT) have strongly correlated with noteworthy Bitcoin price surges. This raises a crucial question of whether the price of Bitcoin will endure significant volatility in the coming days.
According to renowned crypto analyst Tone Vays, Bitcoin’s current consolidation phase indicates an underlying momentum. Vays pointed out that the weekly chart for BTC shows the formation of an ascending triangle. Indeed, this technical pattern often precedes a significant upward movement in price.
He predicted a “huge pump” in Bitcoin’s value, potentially reaching a peak of $48,628. Still, Vays also cautions about a subsequent pullback. Particularly, in the wake of potential news from the SEC regarding a spot Bitcoin ETF (exchange-traded fund).
“Bitcoin is forming an ascending triangle. This is setting up a huge pump next week to $48,628. And if we get a huge pump next week on SEC news, I’m expecting a big pull back right after,” Vays affirmed.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Echoing a similar sentiment, Ali Martinez, another prominent figure in the crypto market, has identified a key pattern governing Bitcoin’s price action since September 2023. Martinez referred to an ascending parallel channel, a technical formation that suggests a potential rise in Bitcoin’s price toward $48,000.
However, this price rally might not be without its challenges. Martinez forecasted a possible rejection at this peak, leading to a retracement toward $34,000 before a rebound to an even higher target of $57,000.
The minting of such a large volume of USDT by Tether could potentially catalyze a substantial uptick in Bitcoin’s price, aligning with the technical patterns outlined by Vays and Martinez. However, this optimism is tempered by the possibility of volatility, with potential pullbacks that may test the resilience of investors and the market’s overall stability.
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