According to the cryptocurrency financial services provider Matrixport, a substantial drop in Tether USDt’s market value and trading activity alone doesn’t necessarily indicate a downturn in the overall market.
According to CoinGecko’s data, the market value of Tether’s USDt stablecoin has decreased by approximately 2.8% since reaching a peak of $141 billion on December 19, 2024.
As a crypto investor, I’ve noticed a significant drop in USDT trading activity over the past few weeks. The daily volumes have dipped dramatically, falling approximately 64% from around $154 billion in mid-December to about $55 billion on January 6, 2025. This decline is quite noticeable and has caught my attention.
In a recent post on January 6th, Matrixport stated that the decline in USDT’s trend might primarily be due to a decrease in trading activity during the holiday season rather than a negative turn in the broader cryptocurrency markets.
Matrixport predicts bullish momentum resuming soon
As a crypto investor, I’ve noticed that when stablecoin trading volumes surge, it often signals a positive trend for the cryptocurrency market. This influx of trading activity suggests an increase in fiat money being channeled into our digital ecosystem.
When these trends flip, it usually indicates a period of consolidation for Bitcoin and the wider cryptocurrency market, as per Matrixport’s report.
Though Tether’s market value has decreased lately and trades have slowed down, it might be too soon to adopt a negative outlook,” Matrixport stated further.
“These trends could simply reflect the seasonal lull during the Christmas holiday period. With the new year underway, it won’t be long before we see whether the market’s bullish momentum resumes.”
Matrixport isn’t alone in highlighting the ongoing holiday illiquidity season.
According to CryptoQuant analyst Axel Adler, speaking on January 4th, Bitcoin (BTC) requires increased trading activity to generate a robust bullish surge. This powerful uptrend is anticipated to occur following the market’s recovery from the post-holiday lull.
Community slams FUD around Tether and MiCA
Matrixport recently made comments about Tether, following the crypto community’s response to earlier news suggesting a connection between the decline in USDT’s market and the complete enactment of the European Union’s Cryptocurrency Asset Regulation (MiCA).
Despite certain online reports proposing that cryptocurrency platforms in Europe should cease trading Tether’s USDt by December 30, 2024, local regulatory bodies have yet to provide such directives.
Despite repeated inquiries from CryptoMoon, the European Securities and Markets Authority (ESMA), responsible for overseeing compliance with MiCA regulations, has consistently refrained from providing comments on the classification of USDT under MiCA, even following the December 30th deadline.
Despite Coinbase’s decision to delist USDT, trading of this digital token persists in Europe, as platforms such as Binance announced in late 2024 that they will continue to support USDT for now.
A large number of people within the X community have spoken out against reports suggesting that USDT will be removed from significant exchanges across the European Union. They’ve categorized these reports as unwarranted fear, ambiguity, and skepticism (often referred to as FUD).
On January 6th, someone in the industry commented that all rumors circulating about Tether USDt being removed from significant international cryptocurrency platforms because of the EU MiCA law are unfounded fear, uncertainty, and doubt (FUD).
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- Dandadan Shares First Look at Season Finale: Watch
- OKB PREDICTION. OKB cryptocurrency
2025-01-06 13:30