How Does Bitcoin’s Price Relate to Changes in USDT Supply? Insights from CryptoQuant.
In a recent analysis conducted by cryptocurrency analysis company CryptoQuant, new insights into the relationship between the circulating supply of Tether (USDT) and the price of Bitcoin have been revealed.
According to the report, there has been a significant increase of around 30 billion in the circulating supply of USDT since the end of 2022. Each time the supply of USDT has increased in the past, it has proven to have a positive impact on the price of Bitcoin. This correlation has been identified as one of the key findings in CryptoQuant’s analysis.
Analysts suggest that these recent increases in USDT supply have contributed to a bullish outlook for Bitcoin. The market has experienced a turnaround, with signs of increased liquidity. This could be attributed to new capital inflows, potentially driven by the anticipation of a Bitcoin spot ETF and growing interest from investors.
Data analysis further establishes a strong correlation between USDT supply and Bitcoin price movement. As a result, this correlation has led to a surge in trading volume and a dynamic environment for Bitcoin’s price.
It is important to note that this content does not serve as investment advice.