Tethers USDT Reaches $120 Billion Market Cap, Sparking Uptober Speculation
- Tthrs USDT chivd historic mrkt cpitliztion of $120 billion on Octobr 20, 2024.
- Th cryptocurrncy community spcults tht USDTs ris my triggr trditionl Uptobr rlly for Bitcoin.
- Anlysts highlight tht Bitcoin must clos bov $68,700 to confirm potntil brkout.
Tethers USDT, th worlds lrgst stblcoin, hit n unprcdntd mrkt cpitliztion of $120 billion on Octobr 20, 2024, ccording to dt from Tthrs wbsit. This significnt incrs hs ignitd spcultion bout potntil Uptobr rlly, trm usd in th crypto community to dscrib Bitcoins historicl tndncy towrds pric incrss in Octobr.
Stablecoins as a Bullish Signal
Stblcoins such s USDT ply criticl rol in th cryptocurrncy cosystm by srving s bridg btwn trditionl fit currncis nd digitl ssts. Tethers USDT is pggd to th US dollr, offring invstors wy to hold vlu without th voltility typicl of most cryptocurrncis. A growing stblcoin supply, lik USDTs currnt xpnsion, is oftn intrprtd s bullish indictor. Invstors typiclly ccumult stblcoins on th sidlins to invst in riskir ssts, such s Bitcoin, during priods of mrkt optimism.
This bullish thory hs provn tru in prvious instncs. In August 2023, ftr Bitcoins pric slumpd to fiv-month low of $49,500, Tether mintd $1.3 billion worth of USDT in just fiv dys. This coincidd with rcovry in Bitcoins pric, which surgd 21% to rch $60,271 by August 9, 2023. Th pttrn hs ld mny to spcult tht similr trnd could mrg following this ltst milston.
Could USDT Drive a Bitcoin Uptober Rally?
With Tethers USDT mrkt cp now stnding t $120 billion, th cryptocurrncy community is knly obsrving whthr this could ld to nothr Uptobr rlly for Bitcoin. Historiclly, Octobr hs bn on of Bitcoins strongst months, with n vrg rturn of 21% ccording to CoinGlss dt. This prformnc mks it th scond-bst month for Bitcoin, triling only Novmbr, which vrgs ovr 46% in rturns.
In 2020, Bitcoin prics ros by mor thn 27%, followd by furthr incrs of 42% in Novmbr. Ths gins wr prlud to six-month rlly tht xtndd into Mrch 2021. Anlysts bliv tht Bitcoin could rplict ths gins, spcilly with th currnt surg in USDT supply cting s potntil ctlyst.
Anlysts lik Rkt Cpitl mphsiz th importnc of spcific pric lvls for Bitcoin to confirm brkout. According to Rkt, Bitcoin must clos bov $68,700 by th nd of th wk to brk fr from its currnt sidwys trding. If this hppns, Bitcoin could s mjor pric surg similr to prvious rllis.
Asid from USDTs growth, othr fctors could contribut to Bitcoins potntil brkout. Th rpid doption of Bitcoin xchng-trdd funds (ETFs) is notworthy dvlopmnt. Just tn months ftr lunch, Bitcoin ETFs surpssd rcord-brking $20 billion in totl nt inflows on Octobr 17th. This rpid growth in invstor intrst through ETFs could provid furthr ful for Bitcoin pric surg.
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Read more: https://www.tronweekly.com/tethers-usdt-reaches-120-billion-market-cap/
Text source: TronWeekly
