Tether USDT Market Price Decline Linked To ‘Seasonal Vacation’
The recent multibillion-dollar decline in Tether USDT's market capitalization and volumes is not enough to signal a change in markets, according to crypto financial services platform Matrixport.
Since peaking at $141 billion on December 19, 2024, Tether's USDt (USDT) stablecoin has recorded a 2.8% decline in market value, CoinGecko data shows.
USDT trading has also seen a sharp decline over the past few weeks, with daily volumes down 64% from $154 billion in mid-December to $55 billion on January 6, 2025.
However, USDT's downward trend may be the result of a slowdown in business related to the holiday season and should not be linked to a bearish turn in the crypto markets, Matrixport said in an X post on January 6.
Matrixport predicts that bullish momentum will continue soon
In the post, Matrixport noted that an increase in the trading volume of stablecoins is a high indicator for the crypto market, which often reflects the flow of fiat money into the ecosystem.
“However, when these trends reverse, it usually indicates a level of consolidation for Bitcoin and the broader crypto market,” Matrixport reported.
Source: Matrixport
Matrixport writes: “With Tether's market cap falling recently and trading volume slowing, it may be too late to turn bearish.
“These trends may simply reflect a seasonal lull over the Christmas holidays. As the new year rolls in, it won't be long before we see the market pick up again.”
Matrixport is not alone in highlighting the ongoing holiday season of lawlessness.
On January 4, CryptoQuant analyst Axel Adler said that Bitcoin (BTC) should store more trading for strong bullish pressure, which may come after the market recovers from the holiday season.
The community condemns FUD around Tether and MCA
This is Matrixport's comments on Tether as the community reacted to earlier reports that the USDT market crash was linked to the full implementation of the EU Markets Crypto-Assets Regulation (MiCA).
Some online reports suggest that European crypto exchanges should delist Tether USDt by December 30, 2024, while local regulators have not issued such instructions.
The European Securities and Markets Authority (ESMA) – the key regulator of MiCA compliance – has repeatedly declined to comment to Cointelegraph on the status of USDT in MiCA, even after the December 30 deadline.
Related: XRP overtakes USDT to become 3rd largest crypto by market cap
USDT trading continues across Europe following Coinbase's USDT delisting, with exchanges such as Binance announcing that USDT will be supported on its platform until further notice in late 2024.
Source: Nostradamus
Many community members on X are reacting to reports of USDT being removed from major exchanges in the EU as fear, uncertainty and doubt (FUD).
All the ‘news' about the delisting of Tether USD from major global crypto exchanges due to the EU's MCA legislation was FUD, an industry observer wrote on January 6th.
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