The post Bitcoin Survives 13th Largest Market Capitulation, Rebounds Strongly Amid $1.3B USDT Exchange Influx appeared on BitcoinEthereumNews.com.

This week’s market fluctuations saw Bitcoin experiencing its 13th largest capitulation event in the financial markets. Interestingly, Tether’s treasury injected $1.3 billion USDT into exchanges during this turmoil. Notably, Bitcoin rebounded post-crash, with top digital assets such as Bitcoin and Ethereum recovering over 20% on the charts. Understand the recent Bitcoin crash and how significant financial moves by Tether are influencing the cryptocurrency market’s recovery and future trends. Bitcoin’s 13th Largest Capitulation Event This week’s Bitcoin (BTC) market crash stood out as the 13th largest capitulation event recorded in global financial history. The event underscores a critical phase as cryptocurrencies are increasingly integrated into the broader financial system. Despite the downturn, the resilience of the crypto sector was evident. Bitcoin and Ethereum notably recovered, climbing by over 20% post-capitulation, demonstrating the market’s robustness. The Role of Tether’s Treasury in Market Recovery In response to the Bitcoin crash on 5 August, Tether’s Treasury moved $1.3 billion USDT into exchanges, significantly impacting the market’s recovery trajectory. Market analysts, including those from Pro Blockchain, highlighted how this substantial USDT infusion increased liquidity on exchanges. This influx is expected to have a positive influence on future crypto prices, as the expanded USDT supply on exchanges typically correlates with potential upward price movements for various digital assets. USDT Dominance and Its Impact on Cryptocurrency Prices Historical data suggests a trend where cryptocurrency prices tend to fall when USDT dominance rises and vice versa. On the 3-day chart, this inverse relationship has been consistently observed. A notable instance occurred on 13 October 2023, where a drop in USDT dominance led to a rise in crypto prices. Analysts suggest that if the current uptrend in USDT dominance breaks down, it could signal a potential rise in cryptocurrency prices, influenced by changing market dynamics. Bitcoin’s Retail Interest and…

---

Filed under: News - @ August 11, 2024 3:04 am