Tether, the world’s largest stablecoin, has surpassed the $120 billion market capitalization mark for the first time. This surge in USDT supply could be a positive indicator for the cryptocurrency market, potentially fueling a Bitcoin rally.
Historically, October has been a bullish month for Bitcoin, with average returns exceeding 21%. The growing supply of USDT, coupled with the positive historical trend, suggests that a Bitcoin rally may be on the horizon.
The movement of USDT from Tether’s treasury to centralized exchanges (CEXs) indicates strong investor interest and potential buying pressure. This influx of stablecoins can fuel a rally in the broader cryptocurrency market, including Bitcoin.
While the growing USDT supply and positive historical trends suggest a potential Bitcoin rally, it’s important to consider other factors that could influence the market. The recent decline in Ethereum DApp volumes and the potential impact of Ethereum ETFs on Bitcoin’s price dynamics should also be taken into account.
To confirm a potential breakout, Bitcoin needs to close above $68,700. This technical level serves as a crucial resistance point that, if breached, could signal a significant upward move.
The growing supply of USDT and positive historical trends in October suggest that a Bitcoin rally may be imminent. However, various factors, including on-chain activity, Ethereum ETFs, and technical analysis, should be considered when assessing the potential for a breakout. Investors should closely monitor these indicators to make informed decisions about their cryptocurrency investments.
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Author: Sb
