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Tag: USDT

  • Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

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    As Bitcoin (BTC) continues to trade in the high $100,000 range following the October 9 crypto market crash, some bullish signs are starting to emerge. Notably, stablecoin reserves on leading crypto exchanges like Binance are entering all-time high (ATH) territory, hinting at a potential rally for BTC.

    Stablecoin Reserves Rise – Will Bitcoin Benefit?

    According to a CryptoQuant Quicktake post by contributor PelinayPA, Binance stablecoin reserves are approaching ATH levels, indicating that investors are ready to deploy funds to accumulate BTC at current or lower levels.

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    The CryptoQuant analyst highlighted the rapidly falling Bitcoin-Stablecoin Ratio (ESR). For the uninitiated, the ESR measures the proportion of Bitcoin reserves to stablecoin reserves on exchanges like Binance.

    The ratio also gives hints about the market’s potential buying power and selling pressure. Past data shows that whenever the ESR falls sharply during market volatility, BTC’s price tends to surge.

    Essentially, a declining ESR means that stablecoin reserves are growing in comparison to BTC reserves on exchanges. This shows an increase in available “dry powder” on exchanges, which can quickly be used to buy more BTC and initiate another bull rally.

    Conversely, when the ESR rises, it means that stablecoin reserves are falling while BTC supply on exchanges is increasing. This points toward an increase in short-term selling pressure as traders deposit BTC to exchanges to sell.

    Currently, the ESR has fallen to historically low levels, implying that Binance holds relatively large stablecoin reserves compared to BTC reserves. According to PelinayPA, such a setup can have two interpretations:

    In a positive scenario, the abundance of stablecoins suggests significant latent buying power. If market confidence returns, this could trigger a strong wave of buying pressure and mark the start of a new bullish phase.

    Meanwhile, the negative scenario assumes that this liquidity would remain inactive, reflecting investor hesitation and a market in standby mode after the recent bloodbath that resulted in liquidations worth $19 billion.

    Source: CryptoQuant

    Will The Gold Rotation Help BTC?

    Following the crypto market crash earlier this month, which sent BTC from an ATH of more than $126,000 all the way down to $102,000, several whales faced liquidations. Despite the crash, some analysts are confident that the BTC top is not in yet.

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    One of the factors that can significantly benefit BTC in the near term is the capital rotation from gold to the digital asset. In a new report, Bitwise predicted that capital rotation from gold into BTC could propel it to $242,000.

    That said, veteran trader Peter Brandt recently forecasted that BTC could crash 50% from current price levels. At press time, BTC trades at $108,268, down 0.3% in the past 24 hours.

    bitcoin
    Bitcoin trades at $108,268 on the daily chart | Source: BTCUSDT on TradingView.com

    Featured image from Unsplash, charts from CryptoQuant and TradingView.com

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    Ash Tiwari

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  • XRP Price At $23, Dogecoin To $2, And Solana At $1,800? Analyst Unveils 2026 Predictions

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    Crypto analyst Borovik has unveiled his 2026 bullish predictions for the XRP price, Dogecoin, and Solana. This comes as these three altcoins stand out in the ongoing crypto market rally, recording notable gains. 

    Analyst Reveals 2026 Prediction For XRP, Dogecoin, and Solana

    In an X post, Borovik predicted that the XRP price will rally to $23, Dogecoin to $2, and Solana to $1,800 in 2026. He also made predictions for other major coins like Bitcoin, Ethereum, BNB, and TRX. The analyst expects BTC to rally to $896,503, ETH to $35,000, BNB to $7,000, and TRX to $2.7. 

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    However, the analyst didn’t provide any basis for why the XRP price, Dogecoin, Solana, and these other coins could rally to these ambitious targets. Notably, these coins are currently the top 9 largest cryptos by market cap, excluding stablecoins USDT and USDC. These coins are also currently recording notable gains amid the recent crypto market rally. 

    Source: Chart from Borovik on X

    The XRP price has reclaimed the psychological $3 level and now looks set to retest higher resistance levels and possibly flip them into support. Dogecoin has also reached its most recent local high of $0.28 and is now looking to hit the $0.30 level. Solana surpassed $240 yesterday, reaching this level for the first time since January. 

    Fundamentals have played a role in driving this rally for the XRP price, Dogecoin, and Solana. REX-Osprey is launching the first XRP and DOGE ETFs next week, under the 40 Act. These funds will still provide spot exposure to both altcoins, although they differ from the conventional spot crypto ETFs. REX-Osprey’s funds will help inject new capital into the XRP and DOGE ecosystem, which could serve as a catalyst for higher prices. 

    Meanwhile, Solana just saw the launch of a $1.65 billion SOL treasury firm, Forward Industries. The firm completed the private placement earlier this week and immediately began buying SOL through Galaxy Digital, which was one of the investors in the private placement. This has added significant buying pressure on the crypto. 

    More Gains Ahead For These Altcoins

    The XRP price, Dogecoin, and Solana are still expected to record major gains ahead amid this crypto market rally. Crypto analyst CasiTrades suggested that the consolidation period is over for XRP and that it is set to rally to a new all-time high (ATH). Her accompanying chart showed that the altcoin could rally above $4.60. 

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    Crypto analyst Ali Martinez stated that Dogecoin is still in the buy zone and that the bullish breakout will melt faces. His accompanying chart showed that DOGE could rally to as high as $4 if it touches the middle channel of an ascending channel. In a separate analysis, the analyst noted that $1,300 is the primary target for SOL after breaking out of a cup and handle pattern. 

    XRP
    XRP trading at $3.14 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from Getty Images, chart from Tradingview.com

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    Scott Matherson

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  • OKX to end USDT pairs in EU, yet to list Solana meme coins

    OKX to end USDT pairs in EU, yet to list Solana meme coins

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    OKX has decided to discontinue Tether’s USDT trading pairs within the EEA, aligning with the EU’s forthcoming MiCA regulation. 

    The EU’s Markets in Crypto-Assets (MiCA) regulation introduces several restrictions and obligations, particularly targeting stablecoins and the broader spectrum of crypto-asset service providers. 

    Although the regulation does not specifically ban Tether (USDT), it imposes strict requirements on stablecoins issuers, particularly those considered significant due to size, user base, or market impact, a reason why market leaders like OKX are removing USDT trading pairs from the platform. 

    This strategic withdrawal precedes the EU’s expected enforcement of the Markets in Crypto-Assets (MiCA) regulation, which is set to be fully operational by Dec. 30 of this year. OKX customer support revealed this earlier today to several users. However, USDT trading pairs are still visible on the platform. 

    Furthermore, OKX, recognized as the second largest offshore exchange, has notably refrained from listing any recent Solana-based meme tokens. Given the recent popularity of meme coins like Bonk and Dogwifhat, this has surprised the crypto community. 

    Several users have continuously urged the platform to list these popular tokens. However, in a statement today, OKX CEO Star Xu emphasized that the platform will always prioritize tokens with proven utility and potential for early-stage investment. Xu also addressed the community’s efforts to influence listings through social media, stating that such actions would not impact the committee’s decisions and urging halting these practices.

    Xu’s response was a surprising strategy from the exchange, given that major competitors, like Binance, were proactive in listing the trending meme coins very early. The latest Solana meme coins, such as BONK and WIF, have rallied over 3,000% since their launches. Not listing them means OKX has opted not to profit from some of the largest trading activities in the current bull market. 


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    Mohammad Shahidullah

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  • Strike CEO Jack Mallers Announces Expansion of Services into Africa

    Strike CEO Jack Mallers Announces Expansion of Services into Africa

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    Today, Jack Mallers, the CEO of Strike, has announced the expansion of Strike’s suite of Bitcoin services into several African markets.

    Strike Africa will now be available in Gabon, Ivory Coast, Malawi, Nigeria, South Africa, Uganda, and Zambia, with plans for further expansion in the future. With this expansion, Strike aims to address the unique financial challenges faced by many African countries, including high inflation rates, devaluing currencies, and expensive remittance services.

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    Nik Hoffman

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  • Stablecoins Surge: USDT Leads $400 Million Inflows

    Stablecoins Surge: USDT Leads $400 Million Inflows

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    The cryptocurrency industry has witnessed a significant change in the movement of stablecoins, offering valuable observations into the evolving dynamics of the market. Recent data from IntoTheBlock and CryptoQuant has shown a surge in stablecoin inflows into exchanges, reaching record highs in January.

    Notable inflows were observed on January 2nd ($478 million), January 3rd ($489 million), and January 26th ($673 million). However, this trend has since reversed, with outflows dominating the market.

    On January 30th, there was a substantial outflow of $412 million, marking the second-highest daily outflow recorded in the month, following the $541 million outflow on January 19th.

    USDT Leads Stablecoin Rally, But Caution Persists In Crypto Market

    An analysis of the 24-hour trading volume of the top stablecoins on CoinMarketCap reveals that Tether (USDT) and USD Coin (USDC) collectively accounted for approximately 90% of the total volume. Tether, in particular, has been dominant in terms of flows, with a 24-hour trading volume exceeding $42 billion, while USDC’s volume stood at around $6 billion.

    Taking a closer look at the flow of USDT through CryptoQuant, it was found that there was a substantial inflow of $373 million on January 26th, followed by a prevailing trend of outflows, with over $83.4 million observed at the time of writing.

    USDTUSD currently trading at $0.99897 on the daily chart: TradingView.com

    Experts suggest that the rise in stablecoin inflows onto exchanges, particularly the $478 million on January 2nd, could indicate traders’ and investors’ readiness to participate in the market or their desire to safeguard their funds during uncertain times.

    Conversely, the shift towards outflows may signal caution or preparation for potential market volatility. Additionally, the substantial inflow of stablecoins, especially USDT, could indicate increased buying power and intentions to establish positions in the cryptocurrency space.

    Stablecoins Surge, Signal Investor Preparation

    The increase in stablecoin inflows onto exchanges can be interpreted in two ways. Firstly, it may indicate that investors and traders are preparing to enter the market. By moving their funds into stablecoins, they can quickly transition into other cryptocurrencies when they perceive favorable opportunities. This suggests a readiness to participate and take advantage of potential market movements.

    Secondly, the rise in stablecoin inflows may also reflect a desire to keep funds in a secure manner, particularly during uncertain times. Stablecoins offer stability by being pegged to a specific asset, such as the US dollar, which can be appealing to investors seeking to protect their capital in times of market volatility. This cautious approach can be seen as a way to safeguard funds and mitigate risks in an unpredictable market.

    Tether Records Nearly $3 Billion Profit 

    Meanwhile, Tether announced a “record-breaking” $2.85 billion in quarterly profits as the market capitalization of its main token, USDT, approached $100 billion.

    According to a blog post by Tether, the interest gained on the company’s enormous holdings in US Treasury, reverse repo, and money market funds—which support the USDT stablecoin—account for around $1 billion of the earnings in the most recent quarterly attestation report that was released on Wednesday. Everything else was “mainly” due to the growth of Tether’s other assets, like gold and bitcoin (BTC), the stablecoin issuer said.

    Featured image from Wccftech, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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  • Tether minted another $1b USDT on Tron, here’s why

    Tether minted another $1b USDT on Tron, here’s why

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    Stablecoin operator Tether again minted a trove of USDT tokens on Tron’s network, but there’s a catch: the coins aren’t yet available for swaps or transactions. 

    According to LookOnChain, Tether has minted $13 billion in new USDT tokens on Ethereum and Tron blockchains since October last year. The latest addition to Justin Sun’s Tron decentralized network is $1 billion in USDT.

    While the tokens have been minted, on-chain data showed that the USDT added to Tron on Jan. 29 has not been issued yet. This means that the massive mint was intended for future purposes, as confirmed by Tether CEO Paolo Ardoino.

    Ardoino’s clarification, however, has not dispelled speculation that Tether’s mint may foreshadow price increases across a swathe of cryptocurrencies. An uptick in the creation of new USDT is usually tied with bullish sentiment and is sometimes employed as an indicator to signal rising demand. 

    Tether’s total market capitalization, a staggering $96 billion at press time, has been in an uptrend since January last year following multiple marquee crypto bankruptcies and collapses like Terraform, Three Arrows Capital, and FTX.

    USDT market cap | Source: CoinGecko

    In those 12 months, USDT’s cap map grew by nearly $30 billion and solidified its position as the dominant stablecoin on the market, but former Bitmex CEO Arthur Hayes believes legacy financial institutions could challenge this trend.

    During an interview, Hayes said banks like JPMorgan are positioned to overtake Tether and rivals like Circle if and when regulators permit fiat-backed stablecoin issuance.

    Hayes did not surmise when this shift might occur but the 2024 U.S. presidential election may be pivotal in shaping America’s whole-of-government approach to blockchain adoption and crypto assets. Galaxy Digital CEO Mike Novogratz said crypto regulations before an election outcome are unlikely. Some lawmakers foresee friendlier digital asset rules depending on who eventually wins.

    Recently, GOP candidate Donald J. Trump bashed CBDCs and independent runner Robert F. Kennedy labeled them a threat to civil liberties.


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    Naga Avan-Nomayo

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  • Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree

    Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree

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    In an encouraging development for the crypto space, Tether, the issuer of the world’s largest stablecoin USDT, has doubled down on its Bitcoin investment momentum by acquiring a staggering 8,888 BTC, further diversifying its portfolio. 

    Tether Increases Its Bitcoin Holdings

    Tether has recently made its third largest Bitcoin purchase, as the stablecoin issuer added a total of 8,888 BTC valued at $380 million at the time of purchase. This brings its total BTC holdings to 66,465 BTC, valued at $2.81 billion with an average buy price of $42,353. 

    This transaction was captured by BitInfoCharts data, which also showed the previous amounts of BTC accumulated by the blockchain-enabled platform. This recent purchase follows Tether’s Bitcoin investment strategy, in line with its vision to continuously strengthen its reserves by accumulating Bitcoin.

    Earlier in May 2023, the stablecoin issuer announced in a blog post that it would regularly allocate 15% of its net realized operating profits toward increasing its BTC reserves. As of the end of March 2023, Tether held approximately $1.5 billion worth of cryptocurrency, a $1.3 billion difference from its total BTC holdings presently. 

    According to reports from Dune Analytics, Tether has become the 11th largest Bitcoin holder, with Microstrategy, an American business intelligence service, surpassing Tether’s holdings with over 189,00 BTC accumulated. The other addresses in the top 10 rankings are owned by major crypto exchanges and governments, including Binance, Bitfinex and the US government. 

    Tether’s decision to double down on its Bitcoin investments signals its confidence in the cryptocurrency’s future trajectory. It also underscores the blockchain platform’s belief in the long-term potential of BTC as it aims to capitalize on Bitcoin’s potential growth by bolstering and diversifying its digital asset reserve.  

    BTC price sitting at $41,354 | Source: BTCUSD on Tradingview.com

    BTC Accumulation Race Amidst ETF Hype

    Tether’s strategic Bitcoin purchase comes at a time when the crypto market is buzzing with excitement over Spot Bitcoin ETFs. Before the approval of Spot Bitcoin ETFs, Tether had steadily increased its BTC portfolio, purchasing substantial quantities of BTC consistently. In March 2023, the stablecoin issuer bought 15,915 BTC and another 4,083 BTC between the months of May and September.

    The timing of Tether’s BTC purchase suggests a proactive stance towards potentially seizing the opportunities brought forth by the Spot Bitcoin ETF market and the upcoming Bitcoin halving in April.

    In addition to Tether’s large-scale BTC acquisition, Microstrategy is also another major player which has been continually increasing its BTC holdings. The business intelligence software company added a whopping 14,620 BTC to its portfolio in December 2023. At the time, the value of the purchase was about $615.7 million. 

    Other companies with large BTC holdings include Galaxy Digital and Elon Musk’s Tesla, as well as space exploration company SpaceX.

    Featured image from Investopedia, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Stablecoin Takeover? Record Tether 71% Dominance Raises Questions About Crypto Future

    Stablecoin Takeover? Record Tether 71% Dominance Raises Questions About Crypto Future

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    Tether, the issuer of the ubiquitous USDT stablecoin, cemented its dominance in 2023, ballooning its market share to a staggering 71%. This explosive growth, however, comes with a chilling undercurrent: a United Nations report linking USDT to a surge in cybercrime and money laundering in Southeast Asia.

    Glassnode data paints a stark picture of Tether’s ascent. Its market capitalization reached a record $95 billion in January 2024, fueled by a 40% increase in USDT supply over the past year. Meanwhile, competitors like Circle’s USDC saw their market share shrink, with USDT now commanding over 7 times the circulation of its nearest rival.

    Tether Market Dominance Soars 

    USDT dominance shown in green. Source: Glassnode

    Paolo Ardoino, Tether’s new CEO, has prioritized cooperation with U.S. law enforcement. The company boasts of freezing wallets linked to sanctions lists and recovering over $435 million in illicit funds.

    However, the UN report casts a shadow on these efforts, detailing how USDT facilitates “sextortion,” “pig butchering” scams, and underground banking across Asia.

    While Tether has proactively banned over 1,260 addresses linked to criminal activity, the sheer volume of illicit transactions raises concerns about the effectiveness of these measures.

    USDT market cap currently at $94.904 billion. Chart: TradingView.com

    Critics point to Tether’s opaque reserve backing as a breeding ground for misuse, calling for greater transparency to combat money laundering.

    Tether’s Reign At Risk: Regulatory Challenges

    The stablecoin market, once touted as a bridge between traditional finance and the crypto world, now faces a reckoning. Tether’s dominance is undeniable, but its association with criminal activity threatens to erode trust and trigger stricter regulations.

    Tether total assets nearing the $95 billion level. Source: Gabor Gurbacs X post.

    Meanwhile, Circle’s recent IPO filing hints at a potential shift in the landscape. With regulatory scrutiny intensifying, Tether’s future hinges on its ability to address concerns about transparency and combat illicit activity.

    Can it clean up its act and maintain its crown, or will the tide turn towards its more transparent rivals? Only time will tell if Tether’s reign as the king of stablecoins will weather the storm of controversy.

    With its historic 71% market share, Tether’s reign over the stablecoin realm is undeniable. Yet, the shadow of illicit activity threatens to eclipse its success.

    As regulators sharpen their focus and competitors like Circle step into the ring, the question looms: will Tether clean house and retain its crown, or will this be the tipping point for a stablecoin revolution, reshaping the future of crypto itself?

    Only time will tell if Tether’s dominance signals a bright new era for digital currencies or serves as a cautionary tale, paving the way for a more transparent and accountable crypto landscape. The gloves are off, and the fight for the future of stablecoins is just beginning.

    Featured image from Shutterstock

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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  • XRP Price Crosses $0.53 But These Factors Suggests Rally Is Far From Over

    XRP Price Crosses $0.53 But These Factors Suggests Rally Is Far From Over

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    The XRP price saw an impressive run over the last day after news broke that the US Securities and Exchange Commission (SEC) was dropping its lawsuit against Ripple’s executives. This surge carried on into Friday as the altcoin’s price was able to clear the $0.53. Naturally, there has been a pullback from this price level, but whale transactions suggest that the rally may not be over.

    Crypto Whales Flex Their Buying Power

    In the last day, crypto whales have been showing their buying power as the price of cryptocurrencies such as XRP saw a recovery. The first indication of this was a number of large USDT transactions that were making their way toward centralized exchanges.

    The first of these reported by whale tracker Whale Alert was $100 million in USDT transferred to Binance. Then two other transactions carrying the same amount of tokens followed suit, all headed for the Binance exchange as well. Another 50 million USDT would make their way to the exchange just a couple of hours later.

    Then the minting of $1 billion USDT at the Tether Treasury took place as Thursday drew to a close. What followed was a number of transactions carrying USDT in 50 million tranches headed for Binance. The transactions continued into Friday, with the most recent being two hours old, at the time of this writing.

    XRP remains bullish | Source: XRPUSDT on Tradingview.com

    What This Means For XRP Price

    The continuous transfer of stablecoins to centralized exchanges can often signal a willingness to purchase cryptocurrencies. Mostly, these purchases are in Bitcoin but the buying power tends to have a trickle-down effect. Meaning, that as the price of Bitcoin goes up, so will the XRP price.

    In this case, if whales continue to buy and push the Bitcoin price past $30,000, then the XRP price is likely to follow suit and break the $0.55 resistance while at it. However, the XRP price also faces strong resistance as whales have taken to selling.

    As Whale Alert shows, there were a number of large XRP transactions headed toward centralized exchanges. The most notable of these are the 32.3 million XRP worth $15.79 million at the time sent to the Bitso exchange, as well as the 31.1 million XRP worth $15.2 headed to the Bitstamp exchange.

    These whale movements suggest a battle between bulls and bears as they struggle for dominance. But XRP price continues to show strength with 7.44% gains in the last 24 hours, and up 6.94% in the last seven days.

    Featured image from Bitcoinist, chart from Tradingview.com

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    Scott Matherson

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