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There are many factors that directly affect the performance of digital assets on the cryptocurrency market, but the on-chain and market data of Tether stablecoin is one of the most important metrics any crypto trader can use when analyzing the situation on the market.
According to data provided by Santiment, Tether addresses that held from $100,000 to $10 million in the largest stablecoin are nearing three-year lows, which means that the market has lost a massive amount of investors, and there is no real buying power left to push the price of Bitcoin or other cryptocurrencies up.
The supply held and the capitalization of Tether usually reflect the real flow of funds on the cryptocurrency market. Whenever whales start accumulating Tether, the cryptocurrency market sees a rise in inflows and a subsequent rebound, which is not the case in the current bear market.
Since November 2021, Tether saw a gradual decrease in the percentage of Tether held on whale addresses, which means that a lot of private and institutional investors decided to leave the market after Bitcoin hit the ATH.
Despite the negative dynamics on Tether, the market is not down as much as some investors may think while looking at the performance of Bitcoin or other cryptocurrencies. Previously, U.Today covered that the real outflow from the digital assets industry is nowhere near 70%, as it may seem to look at the performance of the cryptocurrency market.
Reportedly, the real outflow from the industry remains at around 30% if we take into account the fact that investors may have redistributed their funds to stablecoins that are not Tether.
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.
Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.
Disclaimer: Any financial and market information given on U.Today is written for informational purpose only. Conduct your own research by contacting financial experts before making any investment decisions.
