Cryptocurrency market participants have been waiting for the markets to recover and enter the green zone for a long time. Although many different analysts frequently share forecasts for recovery, no positive results have been obtained yet. And also centimentpointed to an impending recovery, citing some remarkable data.
USDT Returns to Market – Santiment
According to the on-chain predictions, providers, whales and sharks have started adding back some of the USDT they redistributed to the market. As supply returns to whales’ addresses, the first cryptocurrency bitcoinThere were mild signs of recovery.
Historically, Bitcoin and USDT correlate strongly with each other. With the supply of USDT increasing at Whale addresses, Bitcoin is entering an uptrend, so the current increase in supply at addresses was interpreted by Santiment as a bullish sign.
🐳🦈 #Tether‘s shark & whale addresses are adding back some of the $USDT that they dumped from late 2021 through the end of July. We have seen a striking correlation between #Bitcoin‘s price and the amount of #stablecoin buying power from large holders. https://t.co/xfwbRqwPm6 pic.twitter.com/xaQdpAjwNR
— Santiment (@santimentfeed) October 12, 2022
As it is known, in the crypto money market, stablecoin‘s are usually Bitcoin and Ethereum The increase in their supply is considered an increase in the ‘purchasing’ power of the participants in the market.
Unfortunately, the USDT supply is far from what we saw before the drop in late 2021. Recovery of these values will likely require an accumulation phase that will take months.
In terms of price performance, Bitcoin has not shown any positivity in the market since September when the price hit above $20,000. Various macro-financial events this week likely continue to put pressure on risky assets like BTC and cryptocurrencies in general, so it’s not a realistic scenario to expect a quick recovery.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.