As Trump Influence Persists in Crypto, Tether Issues an Additional $2 Billion in USDT
Tether made headlines in the crypto world by minting 2 billion USDT on the Ethereum network on November 11. Tether's CEO, Paolo Ardoino, stated that this move aims to enhance the liquidity of USDT on Ethereum. However, this minting will not affect the total supply in the market; it will be used in response to increases in USDT demand. This occurred shortly after Tether conducted large-scale USDT transfers from various blockchain networks to Ethereum.
This significant development has sparked speculation in the crypto world and coincided with Bitcoin's rapid rise following Donald Trump's victory in the U.S. elections. Bitcoin reached record levels, climbing to nearly $90,000 during Trump's second presidential term. This surge has been referred to as the "Trump wave" by crypto investors. Experts suggest that the rise is driven by expectations of potential amicable policies towards cryptocurrencies from Trump and market sentiments.
Tether accelerated the minting of USDT to meet market demand. The liquidity move by Tether on the Ethereum network indicates that the abrupt rise in Bitcoin's price following Trump's victory triggered a general increase in confidence in the crypto market. Trump's pro-crypto stance particularly boosted interest in popular cryptocurrencies such as Bitcoin and Dogecoin. Elon Musk's support during this period also played a role in Bitcoin's value appreciation.
The activity in the crypto market suggests an increase in liquidity across both centralized and decentralized platforms, and Tether's large-scale chain swaps to the Ethereum network aim to optimize liquidity. Tether transferred a total of 2 billion USDT to Ethereum from blockchain networks such as Tron, Avalanche, and NEAR. This step is intended to strengthen Tether's presence on the Ethereum network and respond more swiftly to market dynamics.
The rally in Bitcoin immediately following the U.S. elections is underpinned by investor expectations that Trump will develop friendly policies towards the crypto markets. Trump's positive rhetoric regarding cryptocurrencies and emphasis on regulatory flexibility have increased demand for crypto assets, particularly Bitcoin.
Bitcoin experienced its highest daily increase in history last week, with the largest cryptocurrency reaching record levels of $89,900 in the past 24 hours. Additionally, Bitcoin opened at $80,427 yesterday and closed at $88,770, marking an increase of $8,343 in a single day, thus breaking its record for the highest daily increase ever.
According to Galaxy Research data, the previous daily increase record was $7,576 on August 2, 2021. Notably, four of the five highest daily increases in Bitcoin's history have occurred in 2024.