Tether mints $1.3B USDT since market bottom — Can it push Bitcoin above $65K?

Tether, the issuer of the world’s largest stablecoin, has minted over $1.3 billion worth of stablecoins since the market bottom, as investors are seemingly preparing to buy the dip.

Tether’s Treasury printed over $1.3 billion worth of Tether USDt (USDT) since the market bottomed on Aug. 5.

The $1.3 billion was transferred to some of the most popular centralized cryptocurrency exchanges (CEXs), including Kraken, Coinbase, OKX and Bullish, according to an Aug. 9 X post by Lookonchain.

Large stablecoin inflows to crypto exchanges could signal incoming buying pressure since stablecoins are the main on-ramp from the fiat to the crypto world, used by investors.

Is the local crypto market bottom in?

Following the aggressive $510 billion crypto market sell-off, the local market bottom may be in.

Investors have started minting the $1.3 billion USDT since Aug. 5, when Bitcoin (BTC) price bottomed at a five-month low of above $49,500 before starting to recover, according to Bitstamp data.

Since Aug. 5, Bitcoin price staged an over 21% recovery to trade at $60,271 as of 10:44 am UTC. The world’s first cryptocurrency rose over 5.2% during the past 24 hours.

Can USDT help push Bitcoin above the key $65,000 mark?

Bitcoin could still see more downside volatility unless it manages to reclaim the crucial $64,000 to $65,000 mark.

This price level acts as the short-term whale holder realized price for large Bitcoin holding entities, according to an Aug. 9 X post by CryptoQuant.

“The short-term holder whale realized price is in the 64K-65K range. This level may present itself as a resistance.”

Inflows from the US spot Bitcoin exchange-traded funds (ETFs) have also turned positive, which could contribute to Bitcoin's price appreciation. The US Bitcoin ETFs amassed a cumulative $194 million worth of net positive inflows on Aug. 8, according to Farside Investors data.

ETF inflows can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs had accounted for about 75% of new investment in the world’s largest cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.