USDT Market Capitalization Hits New Record of $120 Billion

Bittime - Tether's (USDT) marketcapitalization hit a new record of $120 billion, signaling a potential crypto market rally in October. Could this trigger a Bitcoin price increase?

The market capitalization of USDT (Tether), the world's largest stablecoin pegged to the US dollar, has surpassed the $120 billion mark for the first time.

This is an important milestone in the crypto space, indicating that there is great potential for a crypto market rally, especially Bitcoin. Tether, as one of the major stablecoins, is often regarded as a bridge between fiat currencies and digital assets, so the growth in Tether's supply may reflect investor activity.

On October 20, 2024, according to Tether's official website, USDT's market capitalization reached the new record figure. This surge in capitalization is not only a sign of the stablecoin's stability in the crypto market, but also gives an idea of the state of the emerging market.

Many analysts consider the increase in stablecoin supply as an early signal before a major rally in the digital currency market.

The Effect of USDT Market Capitalization on Bitcoin

The increased supply of stablecoins, including USDT, is often used by crypto investors as a tool to predict market movements. In many cases, investors will stockpile stablecoins before they make large purchases of other digital assets such as Bitcoin (BTC).

This suggests that USDT's significant jump in market capitalization could be the trigger for Bitcoin's October price increase, known in the crypto world as “Uptober,” a month that has historically been positive for Bitcoin.

According to data from Arkham Intelligence, over the past 48 hours, Treasury Tether sent over $66 million in USDT to Binance and over $20 million to Kraken, two of the largest centralized crypto exchanges (CEXs) in the world.

This activity signals significant buying pressure from investors, and could be the first step towards a higher Bitcoin price.

Also read: Bitcoin Price Predictions for 2024 and the Impact of US Elections in the Near Future

Potential Catalysts for a Bitcoin Rally

In addition to the increase in USDT supply, the Bitcoin rally that occurred in August 2024 was also closely related to the minting of new stablecoins. At the time, Tether printed $1.3 billion USDT in five days after Bitcoin's price hit a five-month low above $49,500.

As a result, the price of Bitcoin recovered more than 21% and is now trading around $60,271.

This phenomenon has rekindled optimism that USDT's market capitalization, which now stands at $120 billion, could be the trigger for a big rise for Bitcoin before the end of October. Some analysts even predict that Bitcoin could surpass the $92,000 level in the next few months if this trend continues.

Uptober and the Prospect of a Bitcoin Price Rise

October has been a historically positive month for Bitcoin price. Data shows that the average increase in Bitcoin price this month was 21%. This makes October the second best month for Bitcoin, only losing out to November which recorded an average increase of over 46%.

Bitcoin's previous halving year in 2020 also painted an optimistic picture, with Bitcoin price surging over 27% in October and 42% in November.

An increase in Bitcoin exchange-traded fund (ETF) inflows is also a factor potentially supporting this rally. Total net flows of Bitcoin ETFs recently reached a record $20 billion just 10 months after their launch. In comparison, gold-based ETFs took almost five years to reach the same milestone.

Conclusion

USDT's market capitalization surpassing $120 billion not only signifies the strength of the Tether stablecoin in the crypto market, but is also an important indicator for investors anticipating a rise in Bitcoin prices.

October, which has historically been bullish for Bitcoin, has now seen a significant increase in the stablecoin's supply, and could be a key moment for the next rally.

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