USDT on Exchanges Nears $10 Billion as Crypto Buyers Eye Opportunities

In recent days, a marked uptick in on-chain activity surrounding the leading stablecoin Tether ($USDT) has been seen, with data showing that nearly $10 billion worth of the stablecoin is now sitting on exchanges, the highest level seen in roughly seven months.

According to data from on-chain data analytics platform Santiment, this means that cryptocurrency investors’ “buying power” is now at its highest level since March 2023, with the firm’s chart showing that USDT reached a record high of $16.96 billion on exchanges in August 2022, but fell to a low of $7.12 billion by June 2023, dropping by over 58%.

💸 The $9.99B worth of #Tether sitting on exchanges is the highest level of buying power for #crypto’s top #stablecoin in approximately seven months. Since June 13th, these exchanges have seen a 40% increase in available $USDT. https://t.co/nx5Pbb1Oud pic.twitter.com/G9pINqzcg4

— Santiment (@santimentfeed) October 9, 2023

The cryptocurrency, according to another post form Santiment on the microblogging platform X (formerly known as Twitter), which reveals that Tether’s on-chain activity has grown to see active addresses hit a 3-month high “largely due to increases in exchange deposits.”

Per the firm, wallets holdings between $1 million and $10 million in USDT have been accumulating, with the trend showing growing appetite for forthcoming acquisitions of digital assets.

As CryptoGlobe reported, long-term Bitcoin ($BTC) holders have kept on accumulating the flagship cryptocurrency at a rapid pace, despite the current sideways market that has seen BTC’s volatility plunge over time as its price stays around the $27,000 mark.

According to data from blockchain analytics firm Glassnode, long-term Bitcoin holders have been accumulating approximately 50,000 BTC, worth over $1.35 billion, every month for at least 155 days.

The figures comes from the firm’s HODLer net position change metric. The metric measures how fast wallets that keep coins for at least 155 days are increasing their cryptocurrency holdings. Currently, long-term holders own more than 14.859 million Bitcoin, which is 76% of the available BTC supply, according to the data.

As CryptoGlobe reported Arthur Hayes, the former CEO of BitMEX, recently predicted that the price of BTC will reach a valuation between $750,000 and $1 million by the year 2026.

He attributed this bullish forecast to a variety of economic factors, including government intervention, inflation, and the state of the global economy.

Recently, however, analyst Nicholas Merten warned his substantial following that Bitcoin could see a significant decline if the U.S. economy enters a recession. He attributes this potential fall to the Federal Reserve’s hawkish stance, which he believes could lead to a prolonged economic downturn in the United States.

Featured image via Unsplash.

Source