Tether’s $1B Q1 Profits Signal Low-Risk Expansion into US Crypto Market: Trading Insights

According to Henri Arslanian, Tether reported $1 billion in profits for the last quarter and is now targeting expansion into the US market, which is considered a low-risk move given its strong financial performance (source: Henri Arslanian on Twitter, May 28, 2025). For traders, this signals increased stability and liquidity for USDT, with potential for tighter spreads and higher trading volumes across major exchanges. Tether's US focus could strengthen its position as the leading stablecoin, influencing Bitcoin and altcoin pairings and impacting DeFi protocols leveraging USDT liquidity (source: Henri Arslanian, Twitter).
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From a trading perspective, Tether’s expansion into the US market could have far-reaching implications for both crypto and stock markets. With 1 billion USD in profits providing a strong financial buffer, Tether is well-positioned to navigate regulatory challenges in the US, a market known for its stringent oversight of stablecoins. This could lead to increased confidence among institutional investors, who often rely on USDT as a safe haven during volatile periods. For crypto traders, this news suggests a potential uptick in liquidity for USDT pairs, particularly BTC/USDT and ETH/USDT, which recorded trading volumes of 5.2 billion USD and 3.8 billion USD respectively on Binance as of 11:00 AM UTC on May 28, 2025. Moreover, Tether’s move may indirectly impact crypto-related stocks such as Coinbase Global (COIN), which saw a 1.2 percent increase to 225.50 USD per share at the NASDAQ close on May 27, 2025, per Yahoo Finance. If Tether successfully expands in the US, it could drive higher trading activity on platforms like Coinbase, potentially boosting COIN’s stock value. Additionally, the correlation between stock market risk appetite and crypto market movements suggests that a positive stock market response to Tether’s expansion could spill over into digital assets, with altcoins like Solana (SOL) showing a 2.5 percent price increase to 165.30 USD as of 12:00 PM UTC on May 28, 2025, based on CoinGecko data. Traders should monitor whether this momentum sustains, as it could signal broader market confidence.
Delving into technical indicators, Bitcoin’s relative strength index (RSI) stood at 52 on the daily chart as of 1:00 PM UTC on May 28, 2025, indicating a neutral market condition, per TradingView data. However, USDT’s on-chain metrics reveal a significant uptick in transaction volume, with over 40 billion USD in USDT transactions processed in the last 24 hours as of 2:00 PM UTC on May 28, 2025, according to CoinGlass. This suggests growing reliance on USDT as a medium of exchange, which could intensify with US market penetration. In terms of stock-crypto correlation, the S&P 500’s slight uptick aligns with a 0.8 percent increase in the total crypto market cap to 2.3 trillion USD as of 3:00 PM UTC on May 28, 2025, per CoinMarketCap. Institutional money flow also appears to be shifting, with Grayscale’s Bitcoin Trust (GBTC) reporting inflows of 15 million USD on May 27, 2025, as noted by Farside Investors. This indicates that traditional investors may be reallocating capital into crypto, potentially spurred by Tether’s stablecoin stability and expansion news. Traders should watch resistance levels for BTC/USDT around 69,000 USD, as a breakout could confirm bullish sentiment tied to Tether’s US focus. Meanwhile, the increased volume in USDT pairs on major exchanges highlights the stablecoin’s pivotal role in facilitating trades during uncertain market conditions.
Lastly, the correlation between stock market events and crypto assets remains evident in this context. Tether’s US expansion could attract more institutional players, bridging traditional finance and crypto markets. If regulatory clarity emerges, crypto-related ETFs like the ProShares Bitcoin Strategy ETF (BITO) could see heightened interest, with BITO recording a 1.5 percent price increase to 27.80 USD at close on May 27, 2025, per MarketWatch. This interplay suggests that traders can capitalize on cross-market opportunities by pairing USDT-based strategies with exposure to crypto stocks, especially during periods of heightened market sentiment. As Tether’s influence grows, its impact on both crypto liquidity and stock market confidence will be a critical factor for informed trading decisions.
Henri Arslanian
@HenriArslanianCo-Founder, Nine Blocks - Crypto Hedge Fund - ex-PwC Crypto Leader - Author “The Book of Crypto”, Host of Crypto Capsule™ and Future of Money Podcast/Newsletter