The post Could USDT’s $120 billion market cap trigger the next bull rally? appeared on BitcoinEthereumNews.com.

Tether USD (USDT), the largest stablecoin by market capitalization, has reached a significant milestone, surpassing the $120 billion mark. This growth in circulating supply is often viewed as a precursor to a potential bull rally in the cryptocurrency market, sparking speculation that this could signal the next major upward trend for Bitcoin (BTC) and the broader crypto space. Tether’s market cap surge: A bullish signal? As of October 20, Tether’s market capitalization reached $120.16 billion, with over 61% of USDT circulating on the Tron (TRX) network and another 45% on Ethereum (ETH). This increase in Tether’s supply comes at a time when the cryptocurrency market is showing early signs of a potential rebound. “$USDT hitting $120B is a strong sign of how stablecoins are shaping the crypto space. The balance between Tron and Ethereum circulation says a lot about network preferences.” – Earnscape Historically, a growing stablecoin supply is seen as a sign of increased buying power among investors, with rising stablecoin circulation often indicating that investors are preparing to inject liquidity into the market, fueling demand for volatile assets like Bitcoin (BTC). Data from Arkham Intelligence reveals that, in the past 48 hours, Tether’s treasury has sent over $66 million worth of USDT to Binance and another $20 million to Kraken. Tether treasury outflows. Source: Arkham Intelligence These transfers to major centralized exchanges (CEXs) suggest that large-scale investors are gearing up to deploy their stablecoin reserves, potentially pushing the market higher.  This flow of funds into exchanges typically precedes significant buying pressure, creating a favorable environment for a rally. Is Bitcoin set for a breakout? The relationship between Tether and Bitcoin is well-documented, with USDT often serving as a liquidity bridge during periods of market turbulence.  Back in August, Tether minted $1.3 billion worth of USDT over five days,…

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Filed under: News - @ October 20, 2024 5:22 pm