Bitcoin went down a little bit recently, but there are reasons to think that it might go back up again.
These things could show that Bitcoin’s value might go up.
A few days ago, the price of Bitcoin started going up fast, and yesterday, it went above $28,500. Yesterday, the value of the asset went down and it is now lower than $27,500.
We don’t know if the rally is finished yet, but there are some hopeful signs for investors. According to Santiment, there are two good things happening with Tether, the biggest stablecoin in the cryptocurrency world.
The first thing to look at is how much USDT is on exchanges, which shows how much of the stablecoin is being used on centralized exchanges.
Investors often keep their money in stablecoins like USDT to avoid the ups and downs of other assets in the market. These investors usually want to invest in the risky part of the market at some point, because they would have chosen regular money instead if they didn’t.
Once these people think it’s a good time to invest in Bitcoin and other digital coins, they exchange their regular money for the digital currency they want. Naturally, this change makes the assets they buy with their stablecoins more valuable.
Investors usually use exchanges to convert their money, so the amount of money available on these platforms can be seen as potential cash ready to be invested in Bitcoin and other cryptocurrencies.
The chart shows that the amount of Tether available for buying on exchanges dropped to a low of 17. 6% a few months ago, which means there was not much of it left to buy.
Surprisingly, the amount of stablecoin in the exchange dropped just before Bitcoin’s value went up a lot. This suggests that people were trading their stablecoin for Bitcoin, which caused the price to go up. However, the rally at that time couldn’t continue because Bitcoin eventually started to struggle.
In the months after hitting a low point, the amount of USDT money has slowly increased on exchanges. Currently, 247% of the stablecoin’s supply is on these platforms. Compared to the last rally, it seems like this new increase has a lot of potential for people to buy stocks whenever they want.
The chart also shows the amount of Tether owned by the top ten Tether owners. It seems that these really big investors have bought more stocks during this time, so now they also have a lot of money to invest.
We will have to wait and see if the USDT that has been saved up will be used to support the increase in cryptocurrency prices in the next few days.
Bitcoin cost
As of now, Bitcoin’s price is about $27,400, which is 5% higher than last week.