Movement of stablecoins on market can actually give investors strong and useful signal
The recovery of the cryptocurrency market is a long-awaited event that will eventually pull the digital asset industry back into the green zone and make it profitable once again. sentiment has shared a hint of an upcoming recovery.
USDT returning to market
According to on-chain insights, providers, whales and sharks are adding back some of the USDT they redistributed on the market. As the supply returns to whales’ addresses, we are seeing a slight recovery of the first cryptocurrency.
Historically, Bitcoin and USDT have been showing a strong correlation with each other. With the increase in USDT supply at whale addresses, bitcoin is entering an uptrend which is why the current increase in supply at addresses is considered by sentiment as a bullish signal.
The rise of the stablecoin supply on the market is always considered a rise in the buying power of market participants as stable crypto assets cannot be used in any other way but gaining exposure to more volatile assets like Bitcoin, Ethereum and others.
Unfortunately, the currency USDT supply is nowhere near the values we saw prior to the fall in late 2021. The recovery of those values will at most months accumulate.
In terms of price performance, Bitcoin has not been showing any positivity on the market since September, when the price of the first cryptocurrency rallied above $20,000. A variety of macro-financial events this week most likely creates pressure on risky assets like BTC and cryptocurrencies in general, which is why a fast-paced recovery is not likely to happen.
