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The recovery of the cryptocurrency market is a long-awaited event that will finally drag the digital asset industry back to the green zone and make it profitable once again. Santiment has shared a sign 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 to each other. With the growth of the USDT supply on whale addresses, Bitcoin has been entering an uptrend, which is why the current increase of the supply on addresses is considered a bullish sign by Santiment.
🐳🦈 #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
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 plunge that happened in late 2021. The recovery of those values will most likely take months of accumulation.
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.
Vladislav Sopov