Tether mints additional billion USDt, while Bitcoin (BTC) stuck at important crossroads
As was reported by WhaleAlert, the issuer of one of the most in-demand stablecoins, Tether, has printed an additional billion USDt. The issuance was relaunched after a three-month break, when Tether began to actively build up its supply of stablecoins again on July 29.
— Whale Alert (@whale_alert) August 3, 2022
Many analysts and crypto enthusiasts tend to believe that the rising supply of stablecoins is more of a bullish signal for the crypto market. For example, according to the head of Binance, Changpeng Zhao or simply CZ, the growing supply of stablecoins is bullish for cryptocurrencies in the long term, as it is the same money waiting “on the fence,” and potential powder for a future rally.
Will Clemente, Blockware analyst and also a well-known crypto expert, viewed this from a slightly different point of view. In his opinion, the fewer stablecoins on the market, the better, because oversupply combined with lack of buyers can lead to a crypto market decrease. At the same time, according to Clemente’s model, if the amount of stablecoins in circulation starts to decrease, it will signal the growth of crypto assets. However, it is important to clarify that even within his analysis, the expert agrees with CZ in terms of the presence of a large number of stablecoins on the sidelines.
Current state of crypto market
Yesterday, all eyes were on Nancy Pelosi’s flight. In the run-up to the flight, markets were declining, as no one knew the outcome. However, her successful landing brought positive news. The crypto market began its rise along with the S&P 500 Index on the back of the good news. Bitcoin continues to be in an upward channel. The resistance level remains unchanged – $23,600-24,000.