Tether, the leading stablecoin by market capitalization, has once again minted an additional $1 billion worth of tokens. This boost in Tether’s market cap could potentially fuel Bitcoin’s price journey towards new record highs as it did in the past when Bitcoin soared from $27,000 to a new all-time high of $73,000. Over the last year, Tether’s treasury has minted a total $31 billion, pushing its market cap above $110 billion.
Notably, Bitcoin’s price is heavily influenced by Tether as well as institutional investments into Bitcoin spot exchange-traded funds (ETFs). The last week witnessed a significant inflow into the United States Bitcoin ETFs, netting over $200 million cumulatively. This marked the second consecutive week of net positive flows, reinforcing its role as a critical factor in Bitcoin’s rally. By February 15, about 75% of new investments into Bitcoin, the leading cryptocurrency, came from Bitcoin ETFs when its price breached the $50,000 barrier.
In the meantime, Bitcoin’s breakout in the daily chart seems to have been confirmed with a strong support at the $65,000 mark. This flipping of Bitcoin’s old resistance into support signalizes bullish sentiment for investors. As noted by popular crypto analyst Rekt Capital, Bitcoin managed to mold the previous major resistance into newly-birthed major support.
However, predictions by ScorehoodAI’s AI algorithm indicate a likely correction for Bitcoin to somewhere below $63,500 before it marches towards the psychological $70,000 mark. Should Bitcoin’s price correct to below $63,500, it would trigger liquidations amounting to $1.76 billion worth of leveraged long positions. If the currency were to dip below the $63,000 mark, total liquidations could reach $1.87 billion, based on Coinglass’ data.