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Tether Loads the “Gunpowder” for Q4 Rally: USDT Reserves Hit All-Time High in September
Yahoo Finance· 2025-09-25 08:35
Core Insights - Tether has significantly increased its USDT printing during a market correction, with a total of 8 billion USDT minted in September alone, indicating strong demand for USDT despite market volatility [2][7] - The market capitalization of Tether reached a new record of over 173 billion USDT, driven by increased minting activity [2][3] - Historical trends suggest that periods of accelerated Tether issuance often precede major Bitcoin rallies, indicating potential bullish sentiment in the market [6][7] Market Dynamics - Nearly 200 billion USD in market capitalization was lost in the final week of September, but this has led to renewed demand for USDT [1] - USDT reserves on exchanges increased from 43 billion to 48 billion USDT in September, marking an all-time high and signaling liquidity readiness for traders [4] - The netflow of USDT reached a new high in September, indicating more USDT is moving onto exchanges than leaving, which reflects a positive sentiment among investors [5][6] Investor Sentiment - Analysts suggest that the current minting activity indicates that large investors, or "whales," are preparing to buy dips in anticipation of a market rally [7] - October has historically been Bitcoin's best-performing month, with an average gain of 21.9%, and Q4 has shown an average return of 85.4%, adding to the bullish outlook [7] - The timing of when investors will deploy their USDT balances remains uncertain, but the market is poised for potential movement if a strong catalyst arises [8]