Bitcoin recently saw a 2.9% increase in its price on Friday, reaching above $67,000 for the first time since April 24. This rise has been attributed to the low levels of inflation reported in the latest Consumer Price Index (CPI) data. It is important to note that Bitcoin, as a digital asset, is influenced by various factors beyond just inflation rates.
A report by LookonChain suggests that Bitcoin may experience another price rally soon due to an increase in the supply of a specific stablecoin. The Tether Treasury recently minted an additional 1 billion USDT, indicating a growing demand for the stablecoin. USDT, as the third-largest cryptocurrency and dominant stablecoin in the crypto space, has seen significant growth in the past year, with over 31 billion new tokens minted on the Tron and Ethereum networks. The rise in USDT market share has been linked to Bitcoin’s price increase from $27,000 to $73,000 in the last fifteen months, as increased liquidity from investments in USDT can impact Bitcoin’s supply and demand dynamics.
While the recent influx of 1 billion USDT could potentially boost Bitcoin’s price, other factors such as the BTC spot exchange-traded fund (ETF) market may also play a crucial role in determining Bitcoin’s future price movements. Data from SoSoValue indicates that net inflows into Bitcoin spot ETFs reached $177.01 million on Friday, bringing the total value of the market to $12.58 billion. With more traditional finance players entering the market, Bitcoin is expected to see increased demand, leading to significant price gains.
As of the time of writing, Bitcoin is trading at $66,853, reflecting a 9.64% gain in the last week. The cryptocurrency is currently in a consolidation phase as it prepares to break past the $67,000 resistance level. Despite potential influences from stablecoin supply and ETF market inflows, Bitcoin’s future price movements remain uncertain and are likely to be affected by a combination of various factors. Based on historical price data, Bitcoin is expected to maintain its status as a valuable asset during the ongoing crypto bull season.