With Bitcoin hovering above the $ 42 mark (quotation in real time), Tether (USDT) is giving promising signals that big moves for cryptocurrencies could be on the way, says Santiment, a cryptocurrency market analyst firm.
The company has seen two large spikes in USDT portfolio activity in the past week. The peaks, such as 83 and 74 daily active addresses were recorded, mark the highest levels since last December, Santiment said.
The growth in activity of USDT holders coincides perfectly with changes in the price of Bitcoin, which rose from a low of $ 37,8 a day before the first USDT peak. The flagship cryptocurrency is trading above $ 42,5K as of today.
The increase in assets held in exchanges indicates that market participants are more willing to sell than to hold. Since stablecoins are typically seen as a base currency to hold before allocating funds to riskier digital currencies, the growth in their inflows may be a reflection of buyers' plans to use stablecoins to buy more cryptocurrencies.
Santiment argues that this has historically been perceived as a bullish sign, and encourages cryptocurrency traders to keep an eye on the decline in stagnation.
Balances on exchanges grow
The USDT balance pegged to the dollar on cryptocurrency exchanges reached over $ 4,3 billion today, according to data from another crypto market analyst, Glassnode. This is still one of the highest numbers since March 1, when all-time highs of more than $ 5 billion USDT were seen.
In addition to the increase in USDT inflows for trading platforms, USD Coin (USDC) balances are also reaching all-time milestones, with more than $ 2 billion USDC currently held on crypto exchange addresses. which is more than 20% of the total supply of USDC.
Bitcoin's price stabilizes
Amid these signals, Bitcoin briefly crossed the $ 43 level, climbing nearly 6% in the past 24 hours. BTC then corrected slightly, dropping to its current price of $ 42,5 at the time of writing. However, such levels have not been seen since early March.
The positive sentiment towards BTC price growth could be linked to expectations that the United States Securities and Exchange Commission (SEC) will approve the first Bitcoin spot ETF.
