Could a new surge in TUSD supply trigger another Bitcoin rally?
![](https://cryptonewswire.org/wp-content/uploads/2023/07/tusd.jpg)
The circulating supply of TrueUSD (TUSD), a highly liquid stablecoin, has seen a significant increase of almost $250 million between July 29 and July 30.
While this might appear as a minor uptick for a stablecoin with a circulating supply exceeding $3 billion, historical data suggests that notable price rallies have often followed such spikes in the stablecoin’s supply in Bitcoin.
![tusd supply](https://cryptoslate.com/wp-content/uploads/2023/07/TUSD-supply-1mo.png)
For instance, in early May 2021, TUSD added $800 million to its supply within just five days. Then, in mid-July, following an additional increase of $400 million that took the TUSD supply to a peak of $1.5 billion, Bitcoin began a significant rally. In the days following this peak, Bitcoin’s price soared from $30,800 to its ATH of $68,000 by November.
A similar pattern emerged in February 2023. Between February 26 and March 15, the TUSD supply grew by almost $1.1 billion. This substantial increase in supply preceded a Bitcoin rally that pushed its price from $20,000 to $30,000.
More recently, between June 14 and June 26, TUSD supply experienced another significant increase of $1.1 billion. This surge in supply coincided with Bitcoin reclaiming its position above $30,000 for the second time this year.
![tusd supply btc price](https://cryptoslate.com/wp-content/uploads/2023/07/tusd-supply-btc-3y.png)
Interestingly, this correlation appears to be unique to TUSD. Other stablecoins, such as Tether (USDT), have not demonstrated a similar pattern.
For instance, changes in USDT supply have typically occurred in tandem with Bitcoin’s price movements rather than preceding them.
![usdt supply btc price](https://cryptoslate.com/wp-content/uploads/2023/07/usdt-supply-btc-price-3y.png)
The recent surge in TUSD supply could potentially signal another Bitcoin rally on the horizon. However, investors should approach this correlation with caution.
While the data suggests a pattern, it does not necessarily mean that a surge in TUSD supply will always lead to a Bitcoin rally.
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