Santiment Reports Influx of USDT to Crypto Exchanges Bolsters Buying Power, Countering Sell-Offs

In the last six months, a notable influx of the leading stablecoin, USDT, onto cryptocurrency exchanges has been observed. This trend is considered a potentially bullish signal for the crypto market, as analyzed by the crypto analytics firm Santiment.

Recent data from Santiment reveals a 'mild' resurgence of Bitcoin (BTC) moving onto exchanges this month, attributed to prevailing trader uncertainty. Significantly, the analytics firm highlights that the inflow of USDT to exchanges has been effective in mitigating BTC's sell-off pressures. Currently, there's an approximate 7% increase in the presence of Tether's USDT on exchanges compared to six months ago, signifying enhanced buying potential. This trend is deemed a positive indicator for market bulls. Notably, almost 26% of the total USDT supply is now housed on exchanges, marking a significant shift in the crypto market dynamics.

Following a weekend dip in digital asset prices, Santiment reports an increase in crypto traders forecasting market peaks and expressing bearish outlooks. However, the analytics firm emphasizes an intriguing market principle: 'Markets tend to move in the direction least anticipated by the majority.' This observation suggests potential unexpected market movements contrary to the prevalent bearish sentiment among traders.

Santiment observes a rapid recovery in altcoins from the recent weekend price declines, with a notable resurgence in Ethereum competitor Solana (SOL). The analytics firm, however, advises caution, suggesting that a moderation in SOL's currently high positive social sentiment is necessary before the digital asset can achieve significant upward momentum.

Currently priced at $67.34, Solana (SOL) stands out in the crypto market. Ranking as the sixth largest cryptocurrency by market capitalization, SOL has experienced a notable surge, gaining almost 11% in value over the last week.

Dec 13, 2023