The Impact of USDT Supply on Bitcoin Price
Speculation surrounding Tether’s (USDT) circulating supply and its potential influence on Bitcoin’s price has been ongoing. Recent analysis by CryptoQuant suggests a significant correlation between the supply of USDT and movements in Bitcoin’s price, particularly since late 2022.
USDT Influx Drives Bitcoin Surge
The analysis reveals that the circulating supply of USDT has increased by around 30 billion, with each surge coinciding with a positive impact on Bitcoin’s price trajectory. This suggests that the influx of USDT stimulates growth in Bitcoin’s value, indicating improved market liquidity.
The rise in USDT supply accompanies a surge in Bitcoin’s price, reflecting increased investor interest and anticipation surrounding factors like the potential introduction of a spot Bitcoin ETF. The data analysis highlights a strong correlation between USDT supply dynamics and fluctuations in Bitcoin’s price, creating a more dynamic and voluminous trading environment for the cryptocurrency.
“Data analysis reveals a high correlation between USDT supply and Bitcoin price movement, leading to an increase in volume and a dynamic environment for the Bitcoin price.”
Correlation between USDT circulating supply and Bitcoin’s price
“Since the end of 2022, the circulating supply of $USDT has increased by around 30B. Each increase in supply has traditionally positively affected the development of the $BTC price.”
by @simona_apcFull Postmaintained its position as the dominant stablecoin in the market, nearing a total asset value of $100 billion after experiencing remarkable growth over the past six years. Since the start of 2018, its market capitalization has skyrocketed by an astonishing 6,560%.
Paolo Ardoino, the CEO of the stablecoin issuer, attributed this success to a strong performance in the fourth quarter. Meanwhile, USDT has been capitalizing on high yields from US Treasury bills and allocating a portion of its profits towards purchasing Bitcoin.
The findings are interesting, given that Bitcoin halving years and those that follow have historically been very bullish for BTC.
Hot Take: The Relationship Between USDT Supply and Bitcoin Price
The recent analysis revealing a strong correlation between the supply of USDT and movements in Bitcoin’s price highlights the impact of USDT influx on the cryptocurrency market. With each surge in USDT supply, Bitcoin’s value tends to grow, indicating improved liquidity and stimulating investor interest. This data analysis contributes to a more dynamic trading environment for Bitcoin. Additionally, Tether’s position as the dominant stablecoin, with a nearing total asset value of $100 billion, is further solidified by its remarkable growth over the past six years. As Bitcoin halving years have historically been bullish for BTC, this correlation between USDT supply dynamics and Bitcoin’s price fluctuations holds significant implications for traders and investors.
By
By
By
By
By