The cryptocurrency market is once again in the spotlight, this time due to Tether minting $1 billion of uncirculated USDT on Ethereum in an effort to “replenish inventory” in anticipation of surging demand. However, the move sparked some doubts and rumors about the impact on Bitcoin’s price.

This article will put forward some views on this casting incident, and analyze and discuss the motivations of the casting and its impact on the market outlook.
Thoughts on the Tether minting incident
First, let’s evaluate Tether’s move to mint $1 billion USDT. Tether CEO Paolo Ardoino noted on social media that this was an “authorized but not yet issued transaction,” meaning these USDT are not currently in circulation. This "restocking" practice is commonplace in traditional finance and is designed to cope with surges in demand. However, this has sparked skepticism among some market participants, especially when it comes to stablecoins and the crypto market.

Tether CEO Paolo Ardoino said on social media that the minting was "an authorized but not yet issued transaction," meaning the tokens are still not in circulation.

Tether, a major stablecoin issuer, minted an additional $1 billion in USDT stablecoins on the Ethereum blockchain. The move is described as "replenishing" its inventories in anticipation of a surge in demand.
The casting took place on December 25 and was first reported by Whale Alert on social media. Shortly afterwards, Tether CEO Paolo Ardoino confirmed the minting, writing on X: