Did Tether and Circle’s $3 billion token minting spree protect Bitcoin from losing $60k?

The crypto market has entered a fragile phase as Bitcoin dropped under the critical $70,000 level and bounced off $60,000, a zone that has increasingly acted as a gravitational pull rather than a launchpad. This subdued price action came as the stablecoin market has surged, with Tether and Circle minting billions of dollars’ worth of new tokens in recent days. At first glance, the expansion of digital dollar supply appears to suggest renewed liquidity entering the ecosystem. However, a closer look at flows indicates a more cautious, structurally constrained market. Stablecoins function as the primary liquidity rails of the crypto economy, enabling trading, leverage, settlement, and capital mobility without touching the traditional banking system. As a result, changes in their issuance and movement are often scrutinized for signals about market direction. In this instance, the divergence between rising issuance and weakening exchange flows highlights a market that is accumulating liquidity defensively rather than deploying it aggressively. Related Reading Tether mints $2 billion in USDT as supply reaches a record-breaking $160 billion The latest minting spree reflects intensified crypto market activity as Bitcoin reaches a new all-time high. Jul 16, 2025 · Oluwapelumi Adejumo Stablecoin minting accelerates On Feb. 4, blockchain analysis platform Lookonchain reported that Tether’s USDT and Circle’s USDC collectively added more than $3 billion in newly minted supply over a three-day period. This came even as Bitcoin and other major tokens failed to sustain any upward momentum. The rapid increase was further corroborated by Tether, which reported that USDT ended the fourth quarter of 2025 with a market capitalization of $187.3 billion, an increase of $12.4 billion from the prior quarter. Tether USDT Supply as of 2025 Q4. (Source: Tether) According to the firm, that growth occurred despite a contraction in the broader crypto market, in which digital asset prices fell ...