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Tether (USDT), the world’s largest stablecoin, has just crossed the all-time mark of $120 billion in market capitalization. This news, far from trivial, comes in the context of “Uptober”, a period traditionally favorable for the price growth of Bitcoin and other cryptocurrencies. While the crypto market is often unpredictable, the massive increase in stablecoin supply is often seen as a key indicator of growing investor appetite. At the dawn of a new bull wave, this signal indicates significant moves for the coming weeks.
Tether has reached a 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 stablecoin history. This number was confirmed by Tether’s official website, which provides real-time updates on the circulating supply. So this record reflects the continued confidence of investors in the stablecoin and the strength of its model. The rise in Tether supply, widely seen as an indicator of upcoming crypto investments, could set the stage for a new bull cycle.
Stablecoins like Tether play a vital role in the crypto ecosystem by facilitating transactions between fiat currencies and cryptocurrencies. Indeed, their rapid increase often indicates an increase in purchases of cryptocurrencies such as Bitcoin. Indeed, last August, a rapid issuance of 1.3 billion USDT was followed by a 21% recovery in the price of Bitcoin. With such volume of stablecoins in circulation, expectations are now focused on a possible “Uptober”, a historically bullish month for Bitcoin.
Potential Impact on Bitcoin and the ‘Uptober’ Rally»
Beyond the simple increase in Tether supply, one of the most prominent signals of this bullish momentum lies in the flows of stablecoins towards centralized exchange platforms. According to data from Arkham Intelligence, over $66 million in USDT was sent to Binance, while $20 million was transferred to Kraken in the last 48 hours. These massive moves of stablecoins to exchanges are often a prelude to a wave of crypto purchases. Such buying behavior would represent another bullish impulse for Bitcoin in the coming weeks.
History also favors the October rally, 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 and 42% in November. If these historical patterns are confirmed and the $70,000 technical barrier is breached, we could see an explosive end to the month for Bitcoin and the entire crypto market.
Tether’s $120 billion IPO explosion is significant for the crypto market in October. While history has taught us that stablecoins are the leading indicator of market movements, the Bitcoin rally could intensify in the coming weeks. However, it is necessary to carefully monitor the development of stablecoin flows on exchanges in order to predict future movements. Investors have their eyes glued to this “Uptober” and are hoping for a new bull rally that could pave the way for an unforgettable crypto crash.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.