Key Insights
- Tether CEO Paolo Ardoino recently announced a very important merger for USDT and Bitcoin.
- Tether has now integrated the Bitcoin lightning network’s Taproot Assets Protocol to make USDT useable on the scaling solution.
- Merchants will now be able to accept both Bitcoin and USDT on the lightning network, regardless of where they are in the world.
- Merchants in emerging markets can also benefit greatly from the USDT-Dollar peg as a hedge against volatile local assets for years
- The current market shows a mixed outlook, but Bitcoin is looking at a breakout towards $110,000.
USDT, the largest stablecoin by market cap, is set to be integrated directly into the Bitcoin Lightning network.
This move will completely change how stablecoins are used on the Bitcoin network, and more users are bound to jump onto Bitcoin because of it.
Here’s everything to know, and how this could affect Bitcoin.
Tether and Lightning Labs Join Forces
This update was announced during the Bitcoin-focused Plan B conference in El Salvador, where Tether CEO Paolo Ardoino presented the Bitcoin/USDT merger.
Notably, the introduction of Bitcoin into the Lightning network was made possible through the Taproot Assets Protocol, which was introduced in 2022.
The protocol simply expands Bitcoin’s abilities to support tokenized assets, and could be a major game changer for the network as a whole.
More importantly, Tether’s integration into the Bitcoin lightning network is a major milestone that combines the power of the most popular stablecoin with the most secure layer-2 scaling solution.
Merchants will now be able to accept both Bitcoin and USDT on the lightning network, regardless of where they are in the world.
What Does This Mean for Bitcoin and Stablecoin Users?
This integration will allow USDT to work more seamlessly with the Lightning Network.
Tether has also successfully used the Taproot access protocol to bridge Bitcoin and stablecoins.
In essence, the network will enjoy faster and cheaper transactions compared to traditional Bitcoin transfers.
Merchants (especially ones in emerging markets) can also benefit greatly from the USDT-Dollar peg, which has been a major choice for users looking to hedge against volatile local assets for years.
Elizabeth Stark, the president of the Lightning Protocol pointed out the importance of this merger.
She also mentioned that millions of people will now be able to use Bitcoin’s security for global dollar transactions.
Moreover, users in emerging markets who rely on USDT to protect their savings will gain special benefits from this development.
New All Time High Emerging?
The current market is showing a mixed outlook, with Bitcoin reversing course after hitting the $106,000 high.
The cryptocurrency now trades at around $104,017 at the time of writing, after declining by around 1% within the 24-hour timeframe.
The daily chart shows that even despite the short-term weakness, Bitcoin is taking its rebound from the 50-day EMA very seriously.
The cryptocurrency trades within an ascending channel, and is close to breaking out of the upper trendline.
Bitcoin only needs a little more of a nudge from its bulls, especially with the current RSI reading of 57, which shows that the bulls are stronger than the bears.
The RSI on the daily chart also shows an incoming bullish crossover between the signal line and the MACD, indicating that a bullish impulse move could be on its way.
So far, Bullish targets for Bitcoin include the $109,000/$110,000 zone, $125,000 and $150,000.
