Correlation between Bitcoin and Tether's Market Cap
Correlation between Bitcoin and Tether's Market Cap
Looking at
BTCUSDT and USDT, we see a bullish pattern unfold. The market cap of USDT has been following a similar growth pattern to Bitcoin. These 2 tend to follow similar patterns but there is something else going on here too.
This positive correlation hints at an underlying bullish sentiment. Traders could be converting fiat to USDT, then diving into Bitcoin, riding the wave of price increases. It's a classic case of supply meets demand—USDT's steady market cap growth fuels liquidity, easing the path for investors to move in and out of Bitcoin.
But its not just that, from the 12th of Jan where Bitcoin saw a sell off, the USDT market cap remain unchanged, this suggests that investors were simply holding their USDT on the side ready to get back into the market opposed to where we normally have larger/bearish sell offs, we will see the USDT diminish with the price of Bitcoin.
Will we see Bitcoin head all the way to the Highs or have we got some more consolidating to do first? With the halving coming around the corner and ETF poopularity growing, its hard to deny that we will eventually see a higher valued Bitcoin.
Looking at
BTCUSDT and USDT, we see a bullish pattern unfold. The market cap of USDT has been following a similar growth pattern to Bitcoin. These 2 tend to follow similar patterns but there is something else going on here too. This positive correlation hints at an underlying bullish sentiment. Traders could be converting fiat to USDT, then diving into Bitcoin, riding the wave of price increases. It's a classic case of supply meets demand—USDT's steady market cap growth fuels liquidity, easing the path for investors to move in and out of Bitcoin.
But its not just that, from the 12th of Jan where Bitcoin saw a sell off, the USDT market cap remain unchanged, this suggests that investors were simply holding their USDT on the side ready to get back into the market opposed to where we normally have larger/bearish sell offs, we will see the USDT diminish with the price of Bitcoin.
Will we see Bitcoin head all the way to the Highs or have we got some more consolidating to do first? With the halving coming around the corner and ETF poopularity growing, its hard to deny that we will eventually see a higher valued Bitcoin.
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