Tether has just minted another 1 billion USDT, only hours ago, reigniting debate over stablecoin-driven liquidity flows across the crypto 0 mint comes at a crucial time — Bitcoin is struggling to reclaim higher levels after weeks of volatility, while altcoins continue to bleed as if a full-blown bear market were 1 mints tend to inject liquidity into exchanges, providing the capital needed for traders and market makers to re-enter positions or stabilize volatile price 2 not always an immediate bullish catalyst, they frequently precede recoveries in market sentiment and 3 latest mint follows a wave of renewed uncertainty across the crypto landscape, with investors closely watching Bitcoin’s $110K level as a make-or-break support zone.
Altcoins, meanwhile, are experiencing double-digit declines, raising concerns that risk appetite remains 4 history is any indication, this new influx of stablecoin liquidity could be setting the stage for a short-term rebound — or at least a temporary relief rally — as liquidity begins to circulate across major exchanges and derivative markets in the days ahead. A Liquidity Wave That Could Shake the Market According to data from Lookonchain, Tether and Circle have collectively minted over $7 billion in stablecoins since the October 10 market 5 surge in new supply marks one of the most significant liquidity injections since midyear, sparking speculation about its potential impact on Bitcoin and the broader crypto 6 mints on this scale often act as precursors to major price 7 not a direct form of buying, they indicate that fresh capital is being positioned to enter the market — typically through market makers, institutional desks, or exchanges preparing for renewed trading 8 this context, the $7 billion influx suggests that liquidity conditions are improving after the sharp drawdown that liquidated billions in long positions earlier this 9 Reading: 2,496 Bitcoin Moved After Years Of Inactivity – Long-Term Holders Take Action However, such rapid capital movement can also heighten 10 this liquidity begins to circulate, it can amplify both sides of the market — first triggering relief rallies as buyers re-enter, and then sharp corrections as leveraged positions 11 Bitcoin, the timing is especially 12 BTC still struggling to hold above $108K–$110K, this new liquidity could determine whether the next move is a bullish breakout or another leg lower.
Historically, large stablecoin issuances have preceded upward shifts in Bitcoin’s price, but in a fragile market, they can also fuel speculative whipsaws. Tether’s USDT Dominance Rebounds As Traders Seek Stability Tether’s market dominance has risen sharply to around 5.06%, signaling a notable shift in sentiment as investors move capital into stablecoins amid heightened market 13 weekly chart shows a strong rebound from the 4.6% level, with USDT dominance now testing resistance near the 100-week moving 14 uptick coincides with the broader crypto market downturn following Bitcoin’s failure to hold key support at $110K and widespread selling across altcoins.
Historically, rising USDT dominance reflects increased demand for safety — traders exiting volatile assets and parking capital in stablecoins to wait for clearer market 15 pattern often precedes periods of accumulation, as sidelined liquidity builds up, ready to re-enter once confidence 16 a technical standpoint, the structure suggests that a sustained breakout above 5.2% could extend the dominance rally toward 6%, a level last seen during previous market corrections. However, rejection here would imply stabilization and potential capital rotation back into risk 17 image from ChatGPT, chart from 18
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