Bitcoin price last saw its local level before Tether minted $1.3 billion worth of stablecoins, helping BTC recover more than 21%.

Institutional investors have halted their holdings of stablecoins over the past two days, causing bitcoin's price to fall below a key psychological level.

Over the past 24 hours, Bitcoin BTC tickers $59,001 down 3.9 percent to trade at $58,930 as of 08:03 AM UTC on August 12, down from a weekly high of $62,510.

According to an Aug. 12 post by Onchain analytics platform Lookonchain, the fall below the $60,000 mark is likely due to institutions curbing their stablecoin buying frenzy:

"It seems that institutions have temporarily stopped buying, and the price of $BTC is down 4.5% today! We noticed that institutions stopped receiving $USDT from TetherTreasury and transferring it to exchanges 2 days ago. "Given."

The lack of institutional stablecoin inflows to crypto exchanges may signal a lack of buying pressure and investor appetite for the underlying asset, as stablecoins are an important on-ramp from fiat to the crypto world used by investors. .

Tether's First $1.3 Billion Marked Locally Tether Releases The World's Largest Stablecoin, Tether USDT Drops $1.00, And From August 5th To August 9th From Market Bottom Of $1.3 Billion Has mined high value stablecoins.