Key Takeaways
Tether has minted $1B USDT as Bitcoin’s Worry & Greed Index drops into ‘worry.’ Is that this a strategic transfer hinting that BTC could not have bottomed but?
Tether [USDT] has kicked off a severe minting run.
In lower than per week, the corporate rolled out two $1 billion tranches. That’s $2 billion in contemporary USDT provide hitting the market. The primary batch hit on the fifteenth of August, proper as Bitcoin [BTC] tagged a brand new ATH at $124k.
In the meantime, the second mint adopted on the twentieth of August, aligning with BTC’s retrace to $112k. Is there a sign within the timing, perhaps a touch the market isn’t finished cooling off but?
Tether injects $2B as Bitcoin enters worry zone
Two billion USDT hitting supply in below per week is unlikely to be random.
On the macro aspect, the market has rotated risk-off. BTC has closed two straight weeks within the purple, correcting almost 10% off its ATH. Notably, the full crypto market cap has erased $130 billion over the previous three days.
Consequently, Bitcoin’s Worry & Greed Index plunged 20+ factors to 44, sliding into “worry” territory for the primary time in two months. Sindicate put, BTC’s $112k assist is now staring down a stress take a look at.
Supply: Glassnode
Traditionally, dips into “worry” have usually preceded rebounds, like mid-June, when BTC pulled again 11% from its $110k ceiling and the index dropped to 42, earlier than ripping BTC to its $123k ATH in below a month.
However the flip aspect is evident too. Again within the mid-Q1 to early Q2 cycle, “excessive worry” aligned with BTC’s $74k backside, locking in Bitcoin’s worst quarter in three years.
In parallel, Tether’s fast $2 billion mint provides weight to market construction. Based on AMBCrypto, investor positioning round this liquidity might dictate Bitcoin’s subsequent directional leg.
USDT liquidity shapes BTC’s positioning
Tether’s $1 billion mint might sign both bullish or bearish tilt.
Notably, Bitcoin’s slide into “worry” however above “excessive worry” reveals traders aren’t capitulating. In essence, rebound conviction stays, with FOMO nonetheless lurking on the sidelines.
In the meantime, USDT net flows turned constructive alongside the mint, with 470 million USDT shifting throughout exchanges. The consequence? Bitcoin clawed again 1.27% from its $112k open.
Supply: CryptoQuant
Put collectively, Bitcoin’s backside could be nearer than it seems to be.
Tether’s liquidity injection hit a risk-off market, however there’s no actual “flight to security” sign but. The truth is, the Worry & Greed Index bounced 6 factors to impartial (50) at press time.
In the meantime, USDT flows onto exchanges are heating up, setting the stage for a mid-June-style rebound, with $112k shaping up as a candy spot for a push again towards worth discovery.
