Tether’s USDT reaches $120B market cap

Tether’s (CRYPTO:USDT) USDT stablecoin has surpassed a $120 billion market capitalization for the first time, signaling a possible upcoming rally in the cryptocurrency market.

According to data from Tether’s website, the milestone was reached on October 20, suggesting that investors might be preparing for a bullish market movement, as the increased supply of stablecoins often precedes significant investment in cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH).

USDT, the largest stablecoin in the market, is viewed as a primary bridge between fiat currencies and digital assets.

The rise in USDT supply is seen as a bullish indicator, potentially fueling Bitcoin’s next price surge.

In previous instances, such as in August when Tether minted $1.3 billion worth of USDT, Bitcoin prices saw a substantial recovery, rising over 21% after hitting a low of $49,500.

Tether's treasury flows have also been active, with significant USDT transfers heading to centralized exchanges (CEXs), indicating strong incoming buying pressure.

Arkham Intelligence data shows that $66 million in USDT was sent to Binance and over $20 million to Kraken in the last 48 hours.

This movement suggests that market participants are preparing for possible price increases.

Historically, October has been one of the best-performing months for Bitcoin, with average returns of 21%.

Analysts believe that if Bitcoin can close the week above $68,700, it may confirm a potential breakout.

Additionally, Bitcoin ETFs have seen inflows exceeding $20 billion as of October 17, contributing further to optimism for a market rally.

At the time of writing, the Tether price was $0.9995.