Tether (USDT), the world's largest stablecoin, has just crossed a historic threshold of $120 billion in market capitalization. This news, far from being trivial, comes in the context of “Uptober”, a period traditionally favorable to price increases for Bitcoin and other cryptos. While the crypto market is often unpredictable, the massive increase in the supply of stablecoins is often seen as a key indicator of growing investor appetite. At the dawn of a new bullish wave, this signal suggests significant movements for the weeks to come.
Tether hits new all-time high: $120 billion
On October 20, 2024, Tether (USDT) crossed the $120 billion mark in market capitalization for the first time, marking a new milestone in the history of stablecoins. This figure was confirmed by the official Tether website, which provides real-time updates on the circulating supply. Thus, this record reflects the continued confidence of investors in the stablecoin and the strength of its model. Tether's supply growth, widely seen as an indicator of impending crypto investments, could set the stage for a new bull cycle.
Stablecoins, such as Tether, play a fundamental role in the crypto ecosystem through the facilitation of transactions between fiat currencies and cryptos. Indeed, their rapid rise often suggests an increase in purchases of cryptos like Bitcoin. Indeed, last August, the rapid issuance of 1.3 billion USDT was followed by a 21% rebound in the price of Bitcoin. Thanks to such a volume of stablecoins in circulationexpectations are now focused on a possible “Uptober”, a historically bullish month for Bitcoin.
The Potential Impact on Bitcoin and the Uptober Rally»
Beyond the simple increase in the supply of Tether, one of the most revealing signals of this bullish dynamic lies in the flows of stablecoins towards centralized exchange platforms. According to data from Arkham Intelligence, more than $66 million in USDT was sent to Binance, while $20 million was transferred to Kraken in the last 48 hours. These massive movements of stablecoins onto exchanges are often the prelude to a wave of crypto purchases. Such buying behavior would constitute a further bullish impulse for Bitcoin in the coming weeks.
History also favors a rally in October, known as “Uptober” in crypto circles. Statistically, October is one of the best months for Bitcoin, with average returns of 21%. In 2020, the price of Bitcoin jumped more than 27% in October before climbing 42% in November. If these historical patterns are confirmed, and the technical threshold of $70,000 is crossed, we could see an explosive end to the month for Bitcoin and the entire crypto market.
Tether's supply explosion to $120 billion is momentous for the crypto market in October. While history has taught us that stablecoins are a leading indicator of market movements, Bitcoin's rally could intensify in the coming weeks. However, it is essential to closely monitor the evolution of stablecoin flows on exchanges to anticipate future movements. Investors have their eyes glued to this “Uptober,” hoping for a new bull rally that could pave the way for a memorable crypto fall.
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