The Tether Treasury has minted $1 billion worth of USDT on the Ethereum blockchain, according to a report from Spot On Chain. This substantial issuance of USDT comes just hours before the Federal Reserve’s anticipated decision on an interest rate cut during its meeting scheduled for September 17-18.
The fact that this new $1 billion in USDT is coming at this time is quite interesting because it is arriving as the Fed rate cut is expected to happen, and this may have a profound effect on BTC and the entire cryptocurrency market. In the past, Tether has flooded the market with USDT, and the price of Bitcoin has recovered or even appreciated. In the last year alone, Tether has released a total of $35 billion worth of USDT into circulation. This has been among the key reasons that Bitcoin rose from $ 26,600 to over $ 73,000 by March 2024 due to the influx of the new USDT.
Bitcoin’s Price May Fluctuate with Fed Rate Cut and New $1 Billion USDT Minting
The Federal Reserve’s interest rate policy is another important determinant of the financial markets and investors’ actions. When interest rates are lower, borrowing becomes cheaper, and investors may look for higher returns in other investments, such as cryptocurrencies. Depending on the Fed’s decision and whether it decreases interest rates as anticipated, the following new issuance of USDT might increase the price of Bitcoin.
With investors waiting on the edge for the Fed’s decision, minting $1 billion worth of USDT creates an extra layer of risk and fluctuations in the Bitcoin price. Such additions of USDT may result in noteworthy changes in the cryptocurrency’s price as market participants assess the rate cut and the circulation of more stablecoins.
Overall, the market is closely paying attention to the Federal Reserve’s announcement and the most recent minting of USDT. It is important to note they might influence BTC’s short-term performance and overall trends in markets soon.
