Crypto Braces for Uptober as Tether Reaches AllTime High Market Capitalization
After a challenging September, the notable shifts in the Tether (USDT) stablecoin could suggest that October is indeed poised to fulfill its reputation as ‘Uptober’ for the cryptocurrency sector.
In recent weeks, USDT’s market capitalization has shown a steady increase, soaring from approximately $118.8 billion to $119.2 billion—a new all-time high (ATH)—in just the past week, according to data from CoinMarketCap as of September 23.
USDT 7-day market cap chart. Source: CoinMarketCap
This latest spike follows a $1.5 billion rise in market cap over the past month, and a remarkable increase of around $36 billion in the last year.
**Trending Topics:**
– The number of Bitcoin millionaires has surged by 25% in 2024.
– INX and Backed have expanded their tokenized stock offerings for Non-US investors.
– Bitcoin is gearing up for its most robust September ever.
– R. Kiyosaki predicts Bitcoin could reach $500,000 in 2025, and $1 million by 2030.
Such fluctuations in valuation might indicate that many cryptocurrency investors are gearing up for a buying frenzy across various digital assets. It’s common for traders to accumulate substantial amounts of USDT to facilitate swift transactions in the diverse cryptocurrency market.
**Investor Sentiment on ‘Uptober’**
The enthusiasm surrounding ‘Uptober’ is fueled not just by Bitcoin’s (BTC) 8.10% rise to $63,464 last week but also by a broader sense of positivity in the market. Ethereum (ETH), for example, gained $40 billion in the same period.
BTC 5-day price chart. Source: Finbold
Indeed, BTC is on track to achieve its strongest September on record, with hopes of reaching $70,000 during ‘Uptober.’
**Crypto Analysts Predict an Altseason**
Several prominent crypto analysts, including Ali Martinez, have recently indicated that technical signals suggest the onset of an altseason towards the end of September.
“The #altcoin market cap appears set to exceed $1 trillion… It’s only a matter of time before #altcoinseason arrives!”
pic.twitter.com/NRRa6v3ZOk
— Ali (@ali_charts)
September 22, 2024
On September 21, a user on X, known as Honey, expressed a sentiment widely shared in the crypto community: “I think we’re nearing the phase of the cycle where inexperienced bulls will be rewarded more than cautious bears.”
**Bitcoin Bull Run or Altseason?**
There’s an ongoing debate about whether a Bitcoin bull run will coincide with the altseason, and which of the two is forthcoming. While analysts like Scient believe Bitcoin is poised for an upward move, others, such as well-known trader Credible Crypto, are bearish on BTC and instead favor altcoins like Solana (SOL) and Curve (CRV).
“A wave of bears targeting $44k will be liquidated if we exceed $65k, quickly driving us towards $68.5k. Keep in mind, the market always seeks the nearest liquidity. Many waiting for $44k have now turned into bottom longers. So, I wouldn’t be surprised by an upward move…”
— Scient (@Crypto_Scient)
September 23, 2024
Bitcoin’s next price movement could provide insights into the future direction of the broader cryptocurrency landscape, especially as it hovers near a price point that could break the trend of lower lows and lower highs seen throughout much of the summer.
**Could Tether Spark a ‘Crashtober’?**
However, the increasing dominance of Tether, currently estimated at around 69%, raises systemic risks, especially as the company has faced long-standing scrutiny regarding the authenticity of its dollar reserves.
Numerous industry commentators, including the well-known X user Bitfinex’ed, have long questioned the sustainability and reliability of USDT, citing concerns that it may not be backed by tangible assets.
“It’s astonishing that the only proof anyone needs about Tether’s so-called reserves is… ‘just trust us.’ The entire industry promotes ‘Don’t trust, verify,’ yet operates on ‘Trust us, bro.’ Tether claims to be immensely profitable, yet can’t provide evidence…”
— Bitfinex’ed Κασσάνδρα (@Bitfinexed)
September 21, 2024
Tether’s longstanding avoidance of an external asset audit has done little to quell skepticism or address concerns. Should the most alarming accusations turn out to be true, it could send shockwaves through the cryptocurrency market.
Nonetheless, it’s important to note that as of now, there is no concrete evidence proving that USDT is unbacked. If its recent market growth is indeed legitimate, it could translate into a notably strong October for digital assets.
