The post USDT under fresh scrutiny: Impact on Bitcoin’s final Uptober week appeared on BitcoinEthereumNews.com.

USDT saw a surge in activity following regulatory scrutiny.  However, a common trading strategy that could have benefited BTC failed to materialize. The U.S. government has reportedly launched another investigation into Tether [USDT], a move some are calling the latest “Tether FUD” tactic.  The timing raises eyebrows, with some speculating this is an orchestrated attempt to inject fear and shake out the market before a potential Bitcoin [BTC] breakout.  Given that over 70% of cryptocurrency trades involve USDT pairs, analysts at AMBCrypto caution about the risks tied to Tether’s centralization. Any disruption to USDT could send shockwaves through the entire market. Particularly as BTC heads into the final week of the “Uptober” frenzy. USDT dominance hits new highs, but there’s a catch In the past week, USDT dominance has steadily increased, with daily gains exceeding 2%. Historically, a rise in USDT dominance often coincides with BTC reaching market tops. This was reminiscent of its previous close near $70K.  However, the surge in USDT demand, driven by rising panic, has placed significant downward pressure on BTC, which is currently trading at $67K.  This situation underscores the growing influence of USDT on Bitcoin’s price dynamics. Therefore, it’s crucial to monitor the effects of the recent scrutiny surrounding Tether closely. Source: CryptoQuant Interestingly, during the late trading hours when the news circulated, USDT inflows into exchanges surged dramatically, hitting a two-month high of over $2.3 billion. Despite this spike, USDT dominance remained strong, posting a daily gain of nearly 3%. This suggests that many traders perceived the news as exaggerated or misleading, opting to maintain their net imports. However, there’s a strong possibility that in the coming days, USDT deposits into exchanges could surpass net outflows. If the current BTC price turns out to be a market bottom, it may attract significant liquidity,…

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Filed under: News - @ October 26, 2024 12:11 pm