It was said that Tether’s USDT, which has reached a record market value, could trigger a surge in the crypto market. Will USDT be the key to growth?
USDT, a stablecoin pegged to the US dollar, reached a market value of $120 billion on October 20. The data in question represents the cash flow available for use in the crypto market.
According to a report by Cointelegraph, USDT could flow into Bitcoin and Ethereum, ending a seven-month downtrend. The data suggests that the October rally, referred to as “Uptober”, could continue with USDT outflows.
USDT supply can be transferred to cryptocurrencies.
Stablecoins act as a bridge to the world of digital assets. Investors trade crypto by converting fiat currencies into stablecoins. USDT stands out as the largest stablecoin. Analysts are keeping a close eye on the market cap of stablecoins to understand potential growth in altcoins.
An increase in USDT supply could trigger the next price hike.
It was observed that the USDT supply increased after August 5th, when the price of Bitcoin fell to 49 thousand dollars. As of August 9, 1.3 billion USDT were printed. With the increased supply of USDT, the BTC price increased by 21%.
Predicting that a similar scenario could occur, Cointelegraph noted the following;
“Tether’s growing stablecoin supply could trigger the next “October” rally (crypto-slang for October). October is historically a bullish period for the price of Bitcoin.“
Tether’s treasury flow suggests that a significant supply has been transferred to centralized exchanges. The data points to pressure from investors.
Blockchain research platform Arkham Intelligence reported that $66 million USDT was sent from Tether’s treasury to Binance in the past 24 hours.
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
