Tether Loads the “Gunpowder” for Q4 Rally: USDT Reserves Hit All-Time High in September

In the remaining week of September, many merchants confronted heavy liquidation losses as almost $200 billion in market capitalization was worn out. However, this shock appeared to set off renewed demand. Fresh information on USDT circulation factors to vital shopping for potential.

Tether accelerated its USDT printing in September, pushing its market capitalization to a brand new file. At the similar time, the quantity of USDT deposited on exchanges additionally rose.

Tether Accelerates USDT Printing During Market Correction

Today, Whale Alert reported that Tether minted a further 1 billion USDT. Earlier this week, when market capitalization dropped by nearly $200 billion, Tether issued one other 1 billion USDT.

Lookonchain highlighted that Tether’s minting exercise surged in September, driving its market capitalization to over $173 billion.

“Prices are down, however Tether is printing out contemporary USDT. New mints have surged in the previous couple of days-to-weeks,” analyst Maartunn reported.

This fixed issuance signifies demand for USDT stays sturdy regardless of market corrections. It might also replicate buyers’ technique of ready for higher value ranges to purchase in.

Data from CryptoQuant reinforces this outlook with two key factors.

First, USDT (ERC-20) reserves on exchanges climbed from 43 billion USDT to 48 billion USDT in September, an all-time high. A rising steadiness of USDT on exchanges indicators readiness to deploy liquidity when merchants spot alternatives in value swings.

Second, USDT netflow reached a brand new high in September after steadily climbing since April. Netflow measures the distinction between inflows and outflows. A strongly optimistic netflow means extra USDT is transferring onto exchanges than leaving them.

Historical information additionally reveals that Tether’s intervals of accelerated issuance typically preceded main Bitcoin rallies, as seen in early 2023 and late 2024.

“They have minted 8 billion USDT this month alone, and there are nonetheless 5 days left. I feel large whales are preparing with large liquidity to purchase dips earlier than an enormous rally,” investor BitBull predicted.

Market statistics add weight to this view. Over the previous decade, October has constantly been Bitcoin’s best-performing month, with a median acquire of 21.9%. Q4 additionally stands out as the strongest quarter, with a median return of 85.4%.

The key uncertainty lies in timing—when investors will deploy their USDT balances on exchanges to purchase Bitcoin and altcoins. Yet, the “gunpowder” is loaded and will ignite at any second if a robust catalyst emerges.

The publish Tether Loads the “Gunpowder” for Q4 Rally: USDT Reserves Hit All-Time High in September appeared first on BeInCrypto.