Tether and Circle Inject Billions After Weekend Market Crash – Here’s Why

Group 1 - The recent market crash, triggered by President Trump's tariff announcement on China, led to over $1.75 billion in new USDT and USDC entering circulation [1][3] - Tether minted approximately $1 billion worth of USDT on Ethereum on October 11, with significant minting activity of $775.8 million on October 10 and $771 million on October 11 [1][2] - Circle, the issuer of USDC, minted $750 million in new tokens on Solana, increasing its total holdings on the network to $12.84 billion and overall supply to nearly $75 billion [3] Group 2 - The liquidation cascade following the market crash wiped out over-extended longs and erased double-digit gains from earlier in the week, yet the new stablecoin mints indicate a reallocation of capital into stable assets [4] - Market analysts interpret the influx of stablecoins as a sign that traders are positioning to accumulate digital assets at discounted prices rather than exiting the market [4] - Following the crash, Bitmine, an Ethereum-focused investment firm, acquired approximately 128,700 ETH worth about $480 million, indicating a swift return of capital into the market [5][6]