Tether's leader claims that USDT's rise contributes to Bitcoin's price surge.

In the rapidly evolving world of cryptocurrency, Tether's USDT stablecoin has been making headlines due to its significant growth over the past month. According to recent data, the market capitalization of USDT has increased by approximately 12.5%, reaching an impressive $135 billion.

This growth can be attributed to the capital inflows into spot Bitcoin Exchange-Traded Funds (ETFs) and significant purchases of digital gold by institutional investors. Paolo Ardoino, Tether's CEO, has stated a strong correlation between Bitcoin's rise above $100,000 and the increase in the supply of USDT.

MicroStrategy, under the leadership of Michael Saylor, has been a major player in this growth. The company recently acquired an additional 15,400 BTC for $1.5 billion, increasing its reserves to 402,100 BTC. This influx of funds into Bitcoin has resulted in a rapid growth of the market capitalization of USDT.

The increase in Bitcoin's price has not gone unnoticed. According to CoinGecko, Bitcoin's price has increased by nearly 49% over the past 30 days. This price surge has required significant injections of liquidity from the traditional financial sector into crypto trading to support the upward trend.

Interestingly, the market capitalization of Tether's USDT stablecoin is currently approximately three times that of Circle's USDC stablecoin. Circle's USDC market capitalization has grown by almost 14% over the past month, but remains significantly lower at $40.4 billion.

However, not everything has been smooth sailing for Tether. The company has discontinued its EURT stablecoin, pegged to the euro, due to low demand and tightened regulation in the EU.

The growth of USDT's market capitalization can also be attributed to expansions into regions like Asia and Africa. As of early September 2025, the current market capitalization of Tether's USDT stablecoin stands at approximately 169 billion US dollars, showing a growth of about 9.2% in the first half of 2025.

BlackRock's iBTC fund holdings have exceeded 500,000 BTC amid the influx of funds into Bitcoin-based ETFs. Issuers of such products in the US collectively own 5.54% of the total supply of the first cryptocurrency, according to data from SoSoValue.

In conclusion, the growth of Tether's USDT stablecoin market capitalization is a testament to the increasing interest and investment in cryptocurrency, particularly Bitcoin, from both institutional and retail investors. As the market continues to evolve, it will be interesting to see how these trends develop in the future.