Tether, the company that created USDT, the stablecoin with the largest market capitalization, has issued a large number of new units of this asset.

Specifically, it issued 2 billion USDT in the last 24 hours. This brings the total issuance to 7 billion USDT in one week, according to data from the Arkham explorer.

This is something that strengthens the bullish expectations scenario for bitcoin (BTC), which has been registering new historical high prices since last week.

This is reflected, for example, in a new comment from the trader known on social media as Crypto Rover. With this tether issue, “bitcoin at $100,000 (USD) is imminent,” he said.

You can see below the emissions that the stablecoin has had in the last week.

USDT issuances over the past week. Source: Crypto Rover.

Meanwhile, USDT's market cap, which has been setting new records for a year, reached a new all-time high today. This is USD 127.3 billion, as shown in the following chart.

  Tether market cap. Source: CoinMarketCap.

This set of factors demonstrates a growing demand for this cryptoasset, which may mean greater potential interest in bitcoin and cryptocurrencies.

Rising USDT issuance reflects a positive signal for bitcoin

When the supply of USDT increases significantly, it is often interpreted as a sign that markets may be preparing for an increase in trading activity.

USDT is a stablecoin pegged to the US dollar, meaning it maintains its price. Therefore, it is usually purchased by investors who want to keep their money without exposure to the high volatility of the cryptocurrency market and enter when they see upside potential.

In other words, this means more liquidity is available to enter bitcoin and cryptocurrencies. Therefore, this scenario suggests a better scenario for the market to continue its upward trend.

The price of Bitcoin, shown below, has been recording new all-time highs since Donald Trump won the US presidential election last week. The Republican plans to have the government hold a strategic reserve of BTC and boost the development of the cryptocurrency industry, which has motivated such a scenario.

In addition, last week, the country decided to cut interest rates after making another one in August for the first time since the pandemic. This implies a lower cost of credit, which represents greater liquidity for the economy, a policy that has historically led to the rise of the markets.

Therefore, the growing issuance of USDT seems to respond to this context of optimism in the market. Meanwhile, bitcoin remains trading near the new record it reached this week of USD 93,000.