According to on-chain data shared by analyst Martun, the Ethereum network saw another large-scale stablecoin issuance, with $991.9 million of ETH-backed USDT minted just hours ago. This major mint by Tether comes at a critical time, as both Ethereum (ETH) and Bitcoin (BTC) face increasing pressure across markets.
Ethereum has struggled to establish solid support over the past few days, trading near recent local lows as investor sentiment becomes increasingly cautious. Meanwhile, Bitcoin continues to test the bottom of a range not seen since June, indicating that the overall crypto market is still in a correction phase following last week’s violent liquidations.
Large Tether mints, especially those issued on Ethereum, are often seen as a signal of an influx of liquidity. This has historically coincided with a short-term pullback or preparation for a “buy on the edge” by market makers. However, given the current volatility and declining momentum, traders remain divided on whether this mint represents a bullish setup or a liquidity safe haven amid uncertainty.
Market makers may be bracing for a near-term Bitcoin rebound
According to Maartunn, the recent nearly $1 billion increase in ETH-backed Tether mints could be an early sign that market makers are preparing for a buyout. Historically, large USDT mints, especially those that occur during market downturns, have preceded short-term rallies in Bitcoin (BTC) and other major assets. These mints often act as a liquidity injection, allowing trading desks and institutional investors to quickly deploy capital once volatility begins to subside.
Maartunn shared a chart comparing the timing of BTC price movements and Ethereum-based USDT minting, showing a clear pattern. Spikes in Tether issuance often coincide with local market bottoms. This correlation suggests that fresh stablecoin liquidity tends to flow into Bitcoin and Ethereum during periods of panic, stabilizing prices and sometimes causing sharp easing rallies.
However, the market is still in a state of fear and uncertainty, with BTC trading near $110,000 and testing lower support levels. After last week’s historic liquidation event, funding rates remain subdued and open interest continues to unwind.
Price movement around the $106,000 to $110,000 zone will be important in gauging sentiment in the coming days. Bitcoin could experience a short-term rebound if mint-driven liquidity begins to circulate in the spot market. However, if caution prevails and liquidity remains on the back burner, the market could again enter a period of consolidation before a clearer direction emerges.
Key Support for Cryptocurrency Market Capitalization Test
According to the graph, the market capitalization of cryptocurrencies has plummeted, dropping more than 4.4% in the past 24 hours to about $3.47 trillion. The decline extends the correction that began after a recent local peak of nearly $4.2 trillion, erasing weeks of gains and pushing the market back towards the 200-day moving average. It is currently an important long-term support located near $3.46 trillion.
This level is important because it represents both a psychological threshold and a technical pivot point for the overall market structure. A clear break below this could open the door to further losses, with the next notable support seen around $3.2 trillion, although a strong rebound from here could confirm that the broader uptrend remains intact.
The 50-day and 100-day moving averages (currently at $3.88 trillion and $3.84 trillion) have both turned lower, reflecting weaker momentum and increased caution among investors. The recent spike in trading volumes suggests capitulation-like activity, possibly related to forced liquidations across Bitcoin, Ethereum, and major altcoins.
For now, market capitalization is at a crossroads. Maintaining the $3.4 trillion zone could mark the beginning of stabilization, but losing it could lead to a deeper correction phase before a sustainable recovery.
Featured image from ChatGPT, chart from TradingView.com
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