9 hours 30 minutes ▪ 4 minutes read ▪ Written by Luc Jose A
Tether (USDT), the world’s largest stablecoin, has just crossed the historic threshold of $120 billion in market capitalization. This news is by no means trivial and comes in the context of the Uptober, which is traditionally a favorable period for rising prices for Bitcoin and other cryptocurrencies. Cryptocurrency markets are often unpredictable, but a significant increase in stablecoin supply is often seen as a key indicator of growing investor appetite. At the dawn of a new bullish wave, this signal hints at a big move in the coming weeks.
Tether reaches new historic record: $120 billion
On October 20, 2024, Tether (USDT)’s market capitalization exceeded $120 billion for the first time, marking a new milestone in stablecoin history. This figure was confirmed by Tether’s official website, which provides real-time updates on circulating supplies. This record therefore reflects investors’ continued confidence in the stablecoin and the strength of its model. An increase in Tether supply is commonly seen as an indicator of impending investment in cryptocurrencies and could pave the way for a new bullish cycle.
Stablecoins such as Tether play a fundamental role in the crypto ecosystem by facilitating transactions between fiat and cryptocurrencies. In fact, their rapid rises often indicate increased purchases of cryptocurrencies such as Bitcoin. In fact, Bitcoin prices rebounded by 21% in August last year following the rapid issuance of 1.3 billion USDT. With such a large number of stablecoins in circulation, expectations are high for the possibility of an “uptober,” a historically bullish month for Bitcoin.
Potential Impact on Bitcoin and the “Uptober Rally”
Beyond a simple increase in Tether supply, one of the most visible signals of this bullish movement lies in the flow of stablecoins to centralized exchange platforms. According to data from Arkham Intelligence, more than $66 million USDT was transferred to Binance and $20 million to Kraken in the past 48 hours. A large-scale movement of stablecoins to exchanges often heralds a wave of crypto purchases. Such buying behavior will likely provide a new bullish impulse for Bitcoin in the coming weeks.
History is also favoring the October rally, known as the “Uptober” in the crypto community. Statistically, October is one of the best months for Bitcoin, with an average return of 21%. In 2020, Bitcoin price rose over 27% in October and 42% in November. If these historical patterns continue and the technical threshold of $70,000 is exceeded, Bitcoin and the entire crypto market could explode higher by the end of the month.
The explosive increase in Tether supply to $120 billion is crucial for the crypto market in October. If history teaches us that stablecoins are leading indicators of market trends, Bitcoin’s rally could get even more intense in the coming weeks. However, it is essential to closely monitor the evolution of stablecoin flows on exchanges in order to predict future movements. Investors are keeping an eye on this “uptober,” hoping for another bullish rally that will pave the way for a memorable fall for cryptocurrencies.
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Luc Jose A.
Toulouse Scientific Diploma and Certification Consultant Alila Blockchain Exam Rejoined 2019 Coin Tribune. Examining the potential of blockchain in the field of economics, and the relationship between public sensibilities and information providers that will bring about a certain evolution of the social system for learning economics. The month is about understanding blockchain and its opportunities. Analyze the purpose of reality, decipher trends in Marche, analyze innovative technologies and perspectives, and analyze social revolution in Marche.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
