Thomas Daniels
Tether’s USDT has reached a historic $120 billion market capitalization, reinforcing the “Uptober” narrative and suggesting a potential rally for Bitcoin and Ether.
USDT, the world’s largest stablecoin, crossed this milestone on October 20, marking a significant moment for the crypto market. Stablecoins like USDT are critical as they serve as an on-ramp between fiat currencies and digital assets, with an expanding supply often signaling impending market rallies.
In past trends, stablecoin growth has frequently preceded cryptocurrency price rebounds. For instance, after Tether minted $1.3 billion worth of USDT in August, Bitcoin experienced a 21% recovery from its five-month low, highlighting USDT’s potential influence on the broader market. Now, with its market cap at a record $120 billion, many are speculating whether USDT could once again trigger a surge in Bitcoin prices, reviving the “Uptober” rally—a term coined for the historically bullish performance of Bitcoin in October.
Data from Arkham Intelligence shows that $66 million in USDT has recently flowed to Binance, with an additional $20 million to Kraken, pointing to increased buying pressure. Historically, stablecoin inflows have preceded price rallies, while their absence has coincided with market corrections.
Bitcoin is currently at a crucial juncture, with a potential breakout contingent on closing the week above $68,700, according to crypto analyst Rekt Capital. Should this occur, alongside growing exchange-traded fund (ETF) inflows, Bitcoin could be poised for a substantial rally.
