The Surge in Tether On-Chain Activity Indicates High Buying Power
Recent data from on-chain data analytics platform Santiment reveals a significant increase in on-chain activity related to the leading stablecoin Tether ($USDT). The data indicates that nearly $10 billion worth of USDT is now sitting on exchanges, marking the highest level seen in approximately seven months. This surge in activity suggests that cryptocurrency investors’ “buying power” is currently at its highest level since March 2023. Santiment’s chart shows that USDT reached a record high of $16.96 billion on exchanges in August 2022 but dropped to a low of $7.12 billion by June 2023, a decrease of over 58%.
According to another post by Santiment on Twitter, Tether’s on-chain activity has grown, resulting in active addresses reaching a three-month high. This growth can be attributed to increases in exchange deposits. The firm also notes that wallets holding between $1 million and $10 million in USDT have been accumulating the stablecoin, indicating a growing appetite for acquiring digital assets.
Long-Term Bitcoin Holders Continue Accumulating Despite Market Conditions
Long-term Bitcoin holders have been accumulating the flagship cryptocurrency at a rapid pace despite the current sideways market. Data from blockchain analytics firm Glassnode shows that these holders have been acquiring approximately 50,000 BTC, worth over $1.35 billion, every month for at least 155 days. Long-term holders currently own more than 14.859 million Bitcoin, which accounts for 76% of the available BTC supply.
Former BitMEX CEO Arthur Hayes predicts that the price of Bitcoin will reach a valuation between $750,000 and $1 million by 2026. He attributes this bullish forecast to factors such as government intervention, inflation, and the global economic situation. However, analyst Nicholas Merten warns that Bitcoin could experience a significant decline if the U.S. economy enters a recession. He believes that the Federal Reserve’s hawkish stance could lead to a prolonged economic downturn in the United States.
Hot Take: Tether’s On-Chain Activity Indicates Growing Confidence in Crypto Market
The surge in Tether’s on-chain activity, with nearly $10 billion worth of USDT sitting on exchanges, suggests a high level of buying power among cryptocurrency investors. This increase in activity indicates growing confidence in the crypto market and a strong appetite for acquiring digital assets. Additionally, long-term Bitcoin holders continue to accumulate the cryptocurrency despite market conditions, demonstrating their belief in its future value. While some predict a bright future for Bitcoin with price valuations reaching hundreds of thousands of dollars, others caution that economic factors such as government intervention and inflation could impact its performance. Overall, the current trends in Tether and Bitcoin highlight the dynamic nature of the crypto industry.
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