Cryptocurrency market needs rise of this metric before we will be able to see recovery
Many factors directly affect the performance of digital assets on the cryptocurrency market, but Tether stablecoin on-chain and market data is one of the most important metrics any crypto trader can use when analyzing the situation in the market.
According to data provided by Santiment, Tether addresses that held from $100,000 to $10 million in the largest stablecoin are nearing three-year lows, which means that the market has lost a massive amount of investors, and there is no real buying power left to push the price of Bitcoin or other cryptocurrencies up.
The supply held and capitalization of Tether generally reflects the actual flow of funds in the cryptocurrency market. Whenever whales start accumulating Tether, the cryptocurrency market sees an increase in inflows and a subsequent rebound, which is not the case in the current bear market.
Since November 2021, Tether saw a gradual decrease in the percentage of Tether held on whale addresses, which means that a lot of private and institutional investors decided to leave the market after Bitcoin hit the ATH.
It’s not as bad as it sounds
Despite the negative momentum on Tether, the market is not as low as some investors might think when looking at the performance of Bitcoin or other cryptocurrencies. Previously, U.Today covered that the digital asset industry’s actual output is nowhere near 70%, as it may appear to be looking at the performance of the cryptocurrency market.
Reportedly, the real outflow from the industry remains at around 30% if we take into account the fact that investors may have redistributed their funds to stablecoins that are not Tether.
