USDT Inflows to Crypto Exchanges Boost Buying Power, Says Santiment
Crypto analytics firm Santiment reveals that the inflow of the top stablecoin USDT onto crypto exchanges in the past six months is a potentially bullish indicator. While Bitcoin (BTC) has experienced mild outflows due to trader uncertainty, USDT inflows have countered the sell-off, resulting in nearly 7% more USDT on exchanges compared to six months ago. This increase in buying power is seen as a positive sign for bulls, according to Santiment. Currently, approximately 26% of the total supply of USDT sits on exchanges.
Market Tops Predicted After Weekend Price Drops
Santiment also observes that more crypto traders are predicting market tops and sharing bearish projections following the recent drop in digital asset prices. However, the firm notes that markets tend to move in unexpected directions, contrary to popular sentiment.
Altcoins Recover Quickly, Solana Shows Potential
Santiment highlights the rapid recovery of altcoins from the weekend’s price drops, particularly Solana (SOL), a competitor to Ethereum (ETH). While SOL has displayed positive social sentiment, Santiment suggests that it may need to cool down before making significant gains. At present, SOL is trading at $67.34 and has gained nearly 11% over the past seven days.
Hot Take: USDT Inflows Counter Sell-Offs, Bringing Optimism to Crypto Markets
The influx of USDT onto crypto exchanges presents a promising outlook for the market. Despite Bitcoin experiencing outflows and bearish predictions emerging after a price drop, USDT inflows have provided new buying power and bolstered sentiment among traders. Additionally, altcoins like Solana have shown resilience and quick recoveries. While caution is advised, the overall trend indicates a positive shift in the market’s trajectory. As USDT continues to flow into exchanges, it brings renewed optimism and potential for further growth in the crypto space.
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