Bitcoin's climb to record levels has sparked bullish sentiment in the crypto market. Notably, there is a significant inflow of Tether (USDT) to exchanges supporting the ongoing rally.
USDT's Daily Inflows to Exchanges
According to data from Santiment, there has been an average net inflow of about $40 million per day of USDT to crypto exchanges over the past eight weeks. These inflows have acted as 'fuel' for many historic crypto price pumps, contributing to positive market sentiment and liquidity.
Stablecoin Potential
A recent report by Standard Chartered and Zodia Markets predicted that stablecoins could grow from 1% to 10% of the US M2 money supply and foreign exchange transactions. The companies believe the utility of stablecoins has expanded beyond crypto trading into cross-border payments, payroll, trade settlements, and remittances.
Future of the Crypto Market
The report highlighted that stablecoins could address inefficiencies in traditional financial systems, offering faster and cheaper transactions. Regulatory clarity, particularly from a potential new US administration in 2025, is viewed as key to unlocking their full potential.
As the year concludes, the crypto market sees strengthening fueled by Bitcoin's rise and substantial USDT inflows. Stablecoins continue to play a crucial role, enhancing potential for future growth and changes in financial systems.
