The Tether Treasury has just minted another 60,000,000 USDT. According to Bitfinex CTO Paolo Ardoino, it is for an ‘inventory replenish.’
As Bitcoin (BTC) safely reclaims the $10,000 price point, bulls are looking to push higher, and the issuing of new USDT is building the momentum further.
60,000,000 #USDT (60,231,667 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) February 19, 2020
Another 60 Million Tether Issued
Given that USDT issuings are correlated with the majority of Bitcoin rallies, bulls are optimistic. The Tether Treasury has just minted another 60,000,000 USDT. The minting was picked up by Whale Alert (@whale_alert) earlier today.
According to Bitfinex CTO Paolo Ardoino, the reason for the new USDT is to replenish inventories. “This amount will be used as inventory for next period issuance requests,” he writes. It’s unclear how soon we can expect this 60M USDT to enter the market, but it seems like some major entity needed USDT.
PSA: Inventory replenish.
Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.
— Paolo Ardoino (@paoloardoino) February 19, 2020
There’s room for speculation that Binance may be looking to acquire more USDT after it suffered a shortage last week. Many large traders were shocked to find that they could not take out USDT loans for their longs, as BeInCrypto reported. The resulting slowdown has culminated in a full report by Binance explaining the functionality problems that the exchange has been struggling with for the past week.
It’s currently unclear whether the Tether Treasury will be supplying Binance with more USDT. However, the exchange did announce unexpected ‘maintenance’ right when this new USDT was issued. The timing is curious.
Bulls Come Out to Play
The responses to the minting of 60,000,000 USDT was overwhelmingly bullish. Many are viewing it as proof that this rally has legs and could go on further. At the time of writing, Bitcoin is trading at $10,150 after climbing back over $10,000 yesterday.
With Bitcoin’s halving set for May 2020, there is much to look forward to and it seems like the entire cryptocurrency market is following. Ethereum (ETH) has outpaced Bitcoin’s gains in the past two weeks and is currently up 5.63% on the daily and trading for $280. Although Tether (USDT) issuings are usually correlated with Bitcoin’s price movements, it seems that all altcoins are benefiting from Bitcoin’s rise for the time being.