In the wake of a challenging September, the noticeable movements of the Tether (USDT) stablecoin may have subtly indicated that October could indeed live up to its reputation as ‘Uptober’ for the cryptocurrency market.
The market capitalization of USDT has been steadily climbing in recent weeks and months, surging from approximately $118.8 billion to $119.2 billion – reaching a new all-time high (ATH) within just the past seven days, according to data sourced from CoinMarketCap on the morning of September 23.
This recent increase follows a $1.5 billion uptick in market cap over the last 30 days and an expansion of around $36 billion over the past year, hinting that numerous cryptocurrency investors may be gearing up for a notable buying spree of various digital assets.
It is not uncommon for traders to accumulate significant quantities of USDT to streamline their planned market activities due to the stablecoin’s capability to facilitate swift trades across different digital assets.
The optimism surrounding ‘Uptober’ stems not only from Bitcoin’s 8.10% ascent to $63,464 the previous week but also from a broader positive sentiment prevailing in the market. For instance, Ethereum added $40 billion in value just last week.
There is anticipation that BTC may achieve its strongest September on record and potentially reach $70,000 during the anticipated ‘Uptober.’
Moreover, well-known crypto analysts, including Ali Martinez, have recently pointed to technical indicators suggesting the onset of an alt season in the second half of September. This optimistic outlook is exemplified by a widely shared sentiment within the cryptocurrency community that favors bullish action and rewards “dumb bulls” over “smart bears.”
While there is a debate surrounding whether a Bitcoin bull run will parallel the altseason and which of the two scenarios will unfold, analysts like Scient foresee a possible upward move for BTC, while others like Credible Crypto express a bearish stance on BTC while favoring altcoins such as Solana (SOL) and Curve (CRV).
Bitcoin’s next move holds key insights into the future trajectory of the broader cryptocurrency market, especially as it hovers close to a price level that could mark a shift from the pattern of lower lows followed by lower highs observed throughout much of the summer.
However, rising concerns persist regarding the potential risks associated with the growing dominance of Tether, estimated at around 69%, amid accusations of the stablecoin not being adequately backed by dollar reserves. Nevertheless, despite skepticism and doubts regarding the stability of USDT, a definitive proof of its unbacked status is yet to be confirmed, leaving the market in anticipation of a potentially robust October for digital assets.