As Bitcoin (BTC) and altcoins show an uptick, Tether (USDT), the leading stablecoin, is witnessing fluctuations in its exchange presence. The start of the week saw Bitcoin’s price surge to $43,500, fueled by investor optimism ahead of the anticipated Federal Reserve meeting. Concurrently, the growing USDT reserves on exchanges suggest a potential increase in cryptocurrency investments.
According to on-chain data provider Santiment, while top cryptocurrencies like Bitcoin and Ethereum (ETH) are being withdrawn from exchanges, USDT has seen a 4% increase in its exchange supply over five weeks. This means that 30% of all USDT in circulation is now held on trading platforms.
The heightened presence of USDT on exchanges is interpreted by analysts as a sign of increased buying power in the crypto market. This could potentially support the continuation of the mid-term bull cycle that began in October 2023, which has been progressing for over three months.
Market dynamics, coupled with the upcoming Bitcoin block reward halving event, slated for April 15, are fueling speculation that the bull cycle might intensify. Investors and analysts are keeping a close eye on supply changes to predict upcoming market trends.
After the Spot Bitcoin ETF approval, Bitcoin faced a sell-off down to $38,500, but it has since recovered, suggesting a “buy the rumor, sell the news” scenario. Some analysts, including Michael van de Poppe, believe the correction phase for Bitcoin might have concluded with the ETF launch. Poppe foresees a consolidation period for Bitcoin, after which he expects an ascent to the $48,000 to $50,000 range, potentially setting the stage for altcoins to rally.