The largest stablecoin Tether (USDT), is experiencing some fluctuations as Bitcoin (BTC) and other altcoins move upward. On the first day of the week, Bitcoin’s price rose to $43,500 amid optimism among investors about the upcoming Fed meeting this week. Meanwhile, the supply of USDT on exchanges is increasing, indicating the possibility of more capital flowing 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. On the other hand, USDT has seen about 4% of its current supply return to crypto exchanges within a five-week period. Currently, 30% of the total USDT supply is held on crypto exchanges.
The increase in USDT supply on crypto exchanges suggests a rise in purchasing power within the crypto market. Analysts suggest that this development could play a role in the continuation of the medium-term bullish cycle that started in October 2023 and has been ongoing for over three months.
Current market dynamics, combined with the proximity of the predicted Bitcoin block reward halving event on April 15 (just 77 days away), contribute to speculation that the ongoing bullish cycle could gain additional momentum. Investors and analysts are closely monitoring supply changes to gauge potential market trends in the coming months.
Has the Crypto Market Correction Come to an End?
After the approval of the Spot Bitcoin ETF, the largest cryptocurrency faced selling pressure down to $38,500 before rebounding, turning into a “buy the rumor, sell the news” event. Some market analysts believe this level could likely be the end of the market correction for Bitcoin.
Experienced crypto analyst Michael van de Poppe noted that the price range for Bitcoin has remained relatively clear and suggested that the correction phase could have ended after the spot ETF launch. Poppe anticipates a consolidation period for Bitcoin, followed by another upward movement to the price range of $48,000 to $50,000.
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.