Tether Supply Rises by 13.6% Since Bitcoin’s ATH, Will This Fuel a Market Breakout?

• Tether’s USDT supply has increased by 13.6% since Bitcoin’s ATH, defying typical bear market trends.
• $15 billion worth of USDT minted but not yet released into the market raises questions about market impact.
• Bitcoin’s market cap reaches $1.198 trillion, with price consolidating around $60,712.28 despite USDT printing.

Despite Bitcoin’s prolonged sideways movement since its peak of $74,000 in March, Tether’s (USDT) printing activity has intensified. According to crypto analyst @DrProfitCrypto, Tether has increased its supply by 13.6% since Bitcoin’s all-time high (ATH). This substantial rise in USDT supply defies typical market trends, where Tether’s market cap would usually decrease during a bear market or a notable correction.

Unprecedented Tether Activity and Market Response

Typically, a drop in Tether’s market capitalization is expected during bear markets, reflecting reduced market activity and lower demand. However, the current scenario presents a stark contrast. Tether has not only maintained its supply but has also continued to print more USDT, even during Bitcoin’s stagnant phase. 

As of now, an additional $15 billion worth of USDT has been minted, yet this influx has not yet entered the market. The market’s subdued reaction to this considerable increase raises questions, especially considering that another $1 billion was minted today. Despite this, the broader market seems to ignore this potentially bullish development.

Market Capitalization and Price Consolidation

Starting with a distinct bear market period from mid-2022 to late 2022, the market capitalization experienced a sharp decline. However, a recovery phase began in early 2023, leading to a gradual increase in market cap, which eventually reached $74 billion by March 2023. 

Source: @DrProfitCrypto on X

Following this, a continued bullish trend pushed the market cap to approximately $115.67 billion. Notably, a 13.65% increase led to a peak of $13.908 billion in a specific segment. Despite this bullish activity, the market has since entered a phase of price consolidation, suggesting a potential pause in the upward movement.

Current Market Dynamics

At press time, Bitcoin was trading at $60,712.28, a 2.5% increase. Over the past 24 hours, the trading range has fluctuated between $58,451.69 and $61,539.91. The market capitalization is recorded at $1.198 trillion, with a fully diluted valuation of $1.274 trillion. Bitcoin’s circulating supply remains at 19,739,718 BTC, with a total and maximum supply of 21,000,000 BTC.