The largest stablecoin Tether (USDT), is experiencing some fluctuations as Bitcoin (BTC) and other altcoins move upward. On the first day of the week, the price of Bitcoin rose to $43,500 among investors due to optimism about the Fed meeting to be held this week. On the other hand, the supply of USDT on exchanges is increasing, indicating that there could be more capital inflow into cryptocurrencies.
30% of Tether (USDT) Supply Now on Exchanges
On-chain data provider Santiment recently reported that the supply of top cryptocurrencies like Bitcoin and Ethereum (ETH) has been moving out of exchanges. However, USDT has seen about 4% of its current supply return to cryptocurrency exchanges over a five-week period. Currently, 30% of the total USDT supply is located on cryptocurrency exchanges.
The increase in USDT supply on crypto exchanges indicates an increase in purchasing power in the cryptocurrency market. Analysts suggest that this development could play a role in the continuation of the mid-term bull cycle that started in October 2023 and has been ongoing for over three months.
Current market dynamics, combined with the proximity of the Bitcoin block reward halving event predicted to occur on April 15 (just 77 days later), contribute to speculation that the ongoing bull cycle may gain additional momentum. Investors and analysts closely monitor changes in supplies to gauge potential market trends in the coming months.
Has the Cryptocurrency Market Correction Come to an End?
Following the approval of the Spot Bitcoin ETF, the largest cryptocurrency faced selling pressure down to $38,500 before bouncing back, turning into a “buy the rumor, sell the news” event. Some market analysts believe that this level could likely be the end of the correction in the Bitcoin market.
Experienced cryptocurrency analyst Michael van de Poppe noted that the price range for Bitcoin remains relatively clear and claimed that the correction phase may have ended after the spot ETF launch. Anticipating a consolidation period for Bitcoin, Poppe expects the largest cryptocurrency to make another upward move to the $48,000 to $50,000 range after the consolidation phase.
The analyst’s perspective indicates that Bitcoin’s price movement could stabilize, allowing for a consolidation period and potentially setting the stage for altcoins to perform better.
