USDT Minting by Tether May Precede Capital Rotation Into Bitcoin and Altcoins

• $4.5B newly minted: Tether and Circle increased stablecoin supply to inject liquidity.

• Ethereum is acting as a dual engine for cash (USDC) and tokenized assets (BlackRock’s BUIDL), both showing notable growth.

• On-chain data: three $1B USDT transfers and multiple $250M USDC batches; USDC supply near $45B, BUIDL > $2B.

Tether and Circle minted $4.5B in stablecoins after the crash — on-chain liquidity is rising; read how it could fuel a crypto rebound. Stay informed with COINOTAG.

Published: 2025-10-16 · Updated: 2025-10-16 · Author: COINOTAG

What happened when Tether and Circle minted $4.5 billion in stablecoins?

Tether and Circle minted $4.5 billion in stablecoins to replenish liquidity after the market sell-off. On-chain records show multiple large issuances — three $1 billion USDT transfers to Tether’s treasury and several $250 million USDC batches from Circle — increasing available dry powder for trading and potential redeployment into risk assets.

How did these issuances occur and what do on-chain records show?

On-chain transaction data indicates that Tether’s multisig executed three near-simultaneous $1 billion transfers to treasury addresses, while Circle issued multiple $250 million tranches of USDC. Public ledger scans and social posts on X corroborate timing and sizes. Coinotag analysis confirms the total new supply at approximately $4.5 billion.

Source: X

Fresh liquidity in the market

Following the crash, the immediate goal of these issuances appears to be replenishing market liquidity. New stablecoin supply reduces funding friction for market makers and trading desks, enabling larger bid/ask capacity and easing order-book stress.

Coinotag’s review of on-chain flows shows that issuances fed treasury and exchange-linked addresses, which historically precedes increased trading activity as market participants redeploy capital.

Who benefits and how might this capital be used?

Primary beneficiaries include liquidity providers, centralized exchanges, and institutional desks that rely on stablecoin rails for rapid market entry and exit. If market confidence recovers, that capital typically rotates from stables into BTC and higher-beta altcoins, supporting price discovery and rallies.

Source: X

Ethereum’s dual engine: cash and tokenized assets

Ethereum is again central to the post-crash liquidity picture. USDC supply has rebounded toward $45 billion, while tokenized products issued on Ethereum — notably BlackRock’s BUIDL fund token representing U.S. Treasury exposure — recently surpassed $2 billion in on-chain value.¹

These parallel flows show Ethereum functioning as both a settlement layer for stablecoins and a registry for tokenized traditional assets, broadening on-chain liquidity channels.

Source: X

Is a liquidity rotation into BTC and altcoins likely?

USDT’s market dominance has trended down over the long term, and even with new minting, dominance metrics are not guaranteed to hold. Historically, when stablecoin issuance increases but dominance weakens, some stable supply moves into risk assets as confidence and price momentum recover.

If dominance continues to fall, the newly minted $4.5 billion could flow into Bitcoin and altcoins, supporting a relief rally. That outcome depends on market sentiment, macro factors, and the pace at which issuers distribute supply to trading venues.

Source: X

Frequently Asked Questions

Why did Tether and Circle mint $4.5 billion after the market crash?

They increased supply to restore liquidity and meet exchange and institutional demand. On-chain records show issuances routed to treasury and exchange addresses, which eases trading capacity and stabilizes markets in the short term.

Will the new stablecoin supply immediately push Bitcoin higher?

Not immediately. Fresh stablecoin supply provides the capacity for buying, but actual price impact depends on deployment speed, trader risk appetite, and macro conditions. If inflows shift from stables to BTC, upward price pressure can follow.

Key Takeaways

• $4.5B minted: Tether and Circle added significant stablecoin supply after the crash.
• Ethereum’s role: USDC recovery and tokenized assets (BUIDL) show Ethereum as both cash and securities rail.
• Potential rotation: If stablecoin dominance continues to decline, capital may rotate into BTC and altcoins — creating conditions for a relief rally.

Conclusion

COINOTAG’s on-chain review shows that Tether and Circle minted $4.5 billion in stablecoins to reintroduce liquidity after a steep market decline. Ethereum continues to host both cash (USDC) and tokenized assets, expanding on-chain liquidity channels. Watch dominance and exchange flows closely — if stablecoin supply moves into risk assets, Bitcoin and altcoins could see renewed buying pressure. For ongoing tracking, Coinotag will monitor ledger flows and market responses.