All about Tether’s $1B USDT injection as Bitcoin navigates delayed tariffs, rate-cut fears

Liquidity injections don’t simply seem out of nowhere. 

On this context, Tether minted one other $1 billion USDT this week, bringing the mixed USDT and USDC issuance to $3.75 billion over the previous seven days. Given the timing, this transfer is unlikely to be a coincidence.

On the macro aspect, the market stays on edge because of two key elements. First, the Supreme Courtroom delayed its tariff ruling, which triggered a fast $2,100 bounce in Bitcoin [BTC] inside simply 45 minutes of the announcement. 

Supply: TradingView (BTC/USDT)

Second, U.S. employment data got here in stronger than anticipated. 

In December, the economic system added 50k jobs, beneath the forecast of 66k, however the unemployment price fell to 4.4%, higher than the anticipated 4.5%. November’s unemployment price was additionally revised down from 4.6% to 4.5%.

General, the information reinforced expectations that the Federal Reserve is prone to pause price cuts on the upcoming FOMC assembly. In actual fact, the market reacted shortly, with the odds of a rate cut slipping to only 4.4%.

In opposition to this backdrop, Tether minted $1 billion USDT simply hours earlier than these occasions – A deliberate, strategic transfer. The query is – Is that this a bullish liquidity increase for Bitcoin, or an early warning sign?

Tether strikes spotlight liquidity demand amid macro FUD

Volatility remains to be in play, for the reason that tariff ruling has been delayed, not denied.

For context, the market is now expecting a decision on tariff legality on 14 January. This makes Tether’s USDT injection look much more strategic. Nevertheless, in keeping with a Bloomberg report, it’s not nearly timing.

In 2025, stablecoin transaction quantity jumped by 72% year-over-year to a file $33 trillion. USDC led the pack with $18.3 trillion, overtaking USDT’s $13.3 trillion to turn into the most-used stablecoin by transaction quantity.

Supply: Artemis Analytics

In the meantime, Tether reserves have fallen by 2 billion over the past 48 hours.

Taken collectively, the excessive transaction quantity and drop in Tether reserves level to rising demand for liquidity. On this context, the current $1 billion USDT mint appears like a strategic transfer to remain forward of the market.

Notably, that’s the place volatility is available in. With the ruling delayed and the outlook for price cuts turning bearish, the market is navigating uncertainty. On this setup, Tether’s liquidity push isn’t precisely a straight increase for BTC.

As a substitute, merchants have been cautious, and both transfer might spark a BTC drop.

Last Ideas

• Tether’s $1 billion USDT mint hinted at strategic positioning amid excessive stablecoin flows and macro uncertainty.
• Delayed tariff rulings and weaker rate-cut odds are protecting merchants within the Bitcoin market cautious.