Another major stablecoin was minted on the Ethereum network, with $991.9 million minted in ETH-backed USDT just a few hours ago, according to on-chain data shared by analyst Maartunn. Tether's massive mint comes at a critical time, with both Ethereum (ETH) and Bitcoin (BTC) under increasing pressure across the markets.
Ethereum has struggled to secure solid support over the past few days, trading near recent local lows as investor sentiment becomes increasingly cautious. Meanwhile, Bitcoin continues to test lows not seen since June, suggesting the broader cryptocurrency market is still in a correction phase following last week's violent liquidation event.
In particular, large Tether mints issued on Ethereum are often seen as a signal of liquidity inflow. This has historically been consistent with short-term bounces or market makers' readiness to “buy low.” However, given the current volatility and declining momentum, traders are still divided on whether this mint represents a bullish setup or a liquidity safety measure during times of uncertainty.
Market makers may be positioning for a short-term Bitcoin rally.
According to Maartunn, the recent ETH-backed Tether mint of around $1 billion could be an early sign that market makers are preparing to buy the dip. Historically, large USDT mints, especially those that occur during market downturns, have outpaced short-term rallies in Bitcoin (BTC) and other major assets. These mints often act as liquidity injections, allowing trading desks and institutional players to deploy capital quickly once volatility begins to subside.
Maartunn shared a chart comparing BTC price movements and the timing of Ethereum-based USDT issuance, which shows a clear pattern. Spikes in Tether issuance often coincide with local market bottoms. This correlation suggests that during periods of panic, new stablecoin liquidity tends to flow into Bitcoin and Ethereum, stabilizing prices and sometimes sparking sharp relief rallies.
However, the market is still in a state of fear and uncertainty, with BTC trading close to $110,000 and testing lower support levels. Funding rates remain low and open interest continues to decline following last week's historic liquidation event.
Price action around the $106K to $110K area over the next few days will be important in gauging sentiment. Bitcoin could experience a short-term rebound once mint-driven liquidity begins to circulate into the spot market. However, if caution is exercised and liquidity continues to be marginal, the market could see another round of consolidation before a clearer direction emerges.
Major support for total cryptocurrency market cap testing
According to the chart, the overall cryptocurrency market capitalization has plummeted by more than 4.4% over the past 24 hours to around $3.47 trillion. The decline extends the correction that began after recent local highs near $4.2 trillion, erasing several weeks of gains and pushing the market towards its 200-day moving average, a key long-term support currently located near $3.46 trillion.
This level is important because it represents both psychological breaking points and technical pivot points for the overall market structure. A clear break below that could result in deeper losses with the next notable support near $3.2 trillion, where a strong bounce could confirm that the broader upward trend remains intact.
Both the 50-day and 100-day moving averages (currently $3.88 trillion and $3.84 trillion) have declined, reflecting weakening momentum and increasing investor caution. The recent surge in trading volume suggests capitulation-like activity that may be related to forced liquidations across Bitcoin, Ethereum, and major altcoins.
Currently, the total market capitalization is at a crossroads. Maintaining the $3.4 trillion area could be the start of stabilization, but losing it could confirm a deeper phase of correction before a sustainable recovery.
Featured image from ChatGPT, chart from TradingView.com
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