Tether Treasury Mints $300 Million of Stablecoin: What Could It Mean for Bitcoin Price?

Tony "The Bull" Severino

6 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Yesterday, the Tether treasury, responsible for managing the supply of the stablecoin, has minted an additional $300 million USD worth of the fiat-backed stablecoin, following the recent bullish Bitcoin price action.

Prior to the powerful break through seemingly unbreakable support at $6,000 in November, Tether had removed the same amount from the market, suggesting that the reduction in Tether may have been correlated to the bearish movement. If this is true, could the addition of $300 million in Tether back into the crypto market be a sign of more bullish movement ahead?

Tether Treasury Creates Another $300 Million Out Of Thin Air

Tether, the company behind the controversial stablecoin cryptocurrency that investors and traders use as a safe haven during price declines in the crypto market, has printed another $300 million of the fiat-backed stablecoin. The minting of new coins was first spotted by the WhaleAlerts Twitter account, that tips off crypto market participants of any large value crypto movements.

💰💰💰 300,000,000 USDT minted at Tether Treasury

Tx: https://t.co/kWuOOZWu5l

— Whale Alert (@whale_alert) April 24, 2019

The crypto community accuses Tether of not having sufficient fiat reserves to back all of the Tether coins that are currently in circulation, posing a threat to the overall market integrity. Fears of Tether being insolvent came to a head in advance of the November 2018 drop to deeper lows.

It was around that time when Tether pulled $300 million of the stablecoin from the market. In the days following that, Bitcoin finally broke through support at $6,000 and fell another 50%.

Does Bitcoin Moon Following Addition of $300M of the Stablecoin?

Since the timing of the removal of Tether from the market appears to be correlated with a massive drop in Bitcoin when it made its final test and break of support at $6,000, the fact that the firm has now added that $300 million back into the crypto market has crypto analysts speculating on what it may mean for Bitcoin and the rest of the altcoin space.

$300m new USDT minted.. Probably nothing right?? $btc😈 pic.twitter.com/XwA9kb5ReN

— filbfilb (@filbfilb) April 24, 2019

In a chart shared by crypto analyst FilbFilb, magnets are used to demonstrate the effect printing and removing Tether from the market appears to have on Bitcoin price. As can be clearly seen, Tether removed $300 million in the days before Bitcoin’s massive drop to the $3,000 range. Now, Tether has added $300 million to the crypto market, and an inverse movement is expected.

What’s also interesting to note is that the $300 million value was removed at Bitcoin approached $6,000, and has now been added back into the market as Bitcoin approaches $6,000 yet again – this time acting as strong resistance.

Should Tether indeed cause an inverse effect from the November drop, resistance at $6,000 could be broken and a new bull market could resume.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.