Bitcoin hit a new annual high of $64,268.
The Tether Treasury issued $1 billion, which coincided with this surge.
Speculation and interest in the cryptocurrency space has been ignited.
Share:Bitcoin (BTC).It broke the $64,000 mark to reach $64,268, setting a new annual record. This increase coincided with the creation of $1 billion USDT by Tether Treasury. The move has sparked widespread speculation and intense interest in the cryptocurrency space.
Whale Alert, a blockchain analysis platform, has saidUSDT is created. This has sparked a debate about the potential impact of Bitcoin. Historical data shows that there is a correlation between the funds issued by Tether and the large amount of Bitcoin value.
In January, Tether issued $2 billion to the market in ten days, coinciding with Bitcoin's "significant", which was also driven by expectations of spot Bitcoin exchange trading** ETFs. This trend has led some to speculate about future Bitcoin volatility. Amid market speculation, Tether CEO Paolo Ardoino sought clarification. He explained that the allocation of 1 billion USDT is not for immediate market impact, but for future issuance demand and on-chain swaps. The senior analyst said:
The Ethereum network replenished its inventory with 1 billion USDT. Keep in mind that this is an authorized but unregulated transaction, which means that this amount will be used as inventory for future issuance needs and chain swaps.Ardoino's statement highlights the operational complexity of blockchain technology. It shows how cryptocurrencies can move across multiple blockchains to meet market demand and increase liquidity. Tether is on the verge of reaching $100 billion in market capitalization. Defillama said that its market share is more than 70%, which is evident in its dominance in the stablecoin market. As a result, speculation of Tether's issuance of 1 billion USDT and 2 billion USDT in January has sparked strong interest in the crypto market as Bitcoin soars record-breaking. The Tether CEO's comments also highlighted the dominance of the stablecoin market and the operational complexity of blockchain technology.