Tether USDT hits $120B market cap, flashing ‘Uptober’ signal.

Tether, the US dollar stablecoin, has surpassed a market capitalization of $120 billion for the first time, signaling the potential for a crypto rally.

Tether's USDT (USDT), the world's largest storcoin, surpassed its $120 billion mark on Oct. 20, according to the company's website, which provides live updates of Statcoin's supply.

Stablecoins are the main conduit between fiat currencies and digital assets. A growing stablecoin supply is often used as a signal to predict an upcoming bull rally, as it suggests that investors will load up on stablecoins before investing in cryptocurrencies.

The growing supply of USDT will help fuel the next Bitcoin (BTC) rally. In August, Tether plunged to a five-day low of more than $49,500 on August 5.

In the year On August 9, the $1.3 billion USDT helped Bitcoin recover more than 21% from the August 5 market to trade at $60,271.

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Could $120 Billion USD Fuel an “Uptober” Bitcoin Rally?

Tether's growing stablecoin supply could fuel the next “Uptober” rally (crypto slang for October) as the month has historically been the most bullish for Bitcoin.

Looking at Tether Treasury flows, a significant portion is being sent to some of the largest centralized exchanges (CEXs), indicating buying pressure from investors.

Arkham Intelligence data shows that in the past 48 hours, Tether Treasury has sent more than $66 million worth of stablecoins to Binance and more than $20 million USD to the Kraken exchange.

Conversely, a loss of Stalkcoin revenue usually leads to a crypto market correction. In the year On August 12, Bitcoin prices fell below $60,000 as institutions temporarily stopped buying USDT and staged a nearly 4% correction.

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Could Bitcoin crash before the end of October?

Based on historical chart patterns, some analysts expected Bitcoin's three-month rally to $92,000 after the September crash.

October is historically the second-best month for the price of Bitcoin, with average returns of 21%, second to November, which averaged 46% for Bitcoin monthly returns, according to CoinGlass data.

In Bitcoin's last half-year of 2020, the price rose more than 27 percent in October and more than 27 percent in November in the six-month rally that lasted until March 2021.

Bitcoin needs to close the week above $68,700 to confirm that it can break out of the current crab walk, according to prominent crypto analyst Rect Capital.

An increase in the flow of Bitcoin exchange-traded funds (ETFs) will contribute to Bitcoin's potential spark. Bitcoin ETFs surpassed a record $20 billion in total net inflows on October 17, 10 months after their launch.

In contrast, it took almost five years for gold-based ETFs to cross this same $20 billion milestone.

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