Bitcoin’s big moment: Tether breaks $120B – are we heading for a bull run?

Tether (USDT), the largest stablecoin in the world, has just crossed a historic threshold of 120 billion dollars in market capitalization. This news, far from being trivial, comes in the context of “Uptober”, a period traditionally favorable for Bitcoin and other crypto price increases. While the crypto market is often unpredictable, the massive increase in stablecoin supply is often seen as a key indicator of growing investor appetite. At the dawn of a new bullish wave, this signal suggests significant movements in the weeks to come.

Tether reaches a new historic record: 120 billion dollars

On October 20, 2024, Tether (USDT) surpassed the $120 billion mark in market capitalization for the first time, marking a new milestone in the history of stablecoins. This figure was confirmed by Tether’s official site, which provides real-time updates on the circulating supply. Thus, this record reflects the ongoing confidence of investors in the stablecoin and the strength of its model. The growth of Tether’s supply, generally perceived as an indicator of imminent investments in cryptos, could be paving the way for a new bullish cycle.

Stablecoins, such as Tether, play a fundamental role in the crypto ecosystem by facilitating transactions between fiat currencies and cryptos. Indeed, their rapid rise often signals an increase in crypto purchases such as Bitcoin. Indeed, last August, the rapid issuance of 1.3 billion USDT was followed by a 21% rebound in the price of Bitcoin. Thanks to such a volume of stablecoins in circulation, expectations are now focused on a potential “Uptober”, a historically bullish month for Bitcoin.

The potential impact on Bitcoin and the “Uptober rally

Beyond the mere increase in Tether’s supply, one of the most telling signals of this bullish dynamic lies in the flows of stablecoins to centralized exchange platforms. According to data from Arkham Intelligence, more than 66 million dollars in USDT have been sent to Binance, while 20 million have been transferred to Kraken in the last 48 hours. These massive movements of stablecoins to exchanges are often a prelude to a wave of crypto purchases. Such buying behavior would constitute a new bullish impulse for Bitcoin in the weeks to come.

History also plays in favor of a rally in October, known as “Uptober” in the crypto community. Statistically, October is one of the best months for Bitcoin, with average returns of 21%. In 2020, Bitcoin’s price jumped more than 27% in October before rising by 42% in November. If these historical patterns continue and the technical threshold of $70,000 is crossed, we could see an explosive end of the month for Bitcoin and the entire crypto market.

The explosion of Tether’s supply to 120 billion dollars is crucial for the crypto market in October. If history has taught us that stablecoins are a leading indicator of market movements, Bitcoin’s rally could intensify in the weeks to come. However, it is essential to closely monitor the evolution of stablecoin flows on exchanges to anticipate upcoming movements. Investors are keeping a close eye on this “Uptober”, hoping for a new bullish rally that could pave the way for a memorable crypto autumn.