The market capitalization of Tether (USDT) has declined by 3% from its peak of $140.8 billion on December 19, 2024, to $137.37 billion as of January 13, 2025. Additionally, Tether’s daily trading volume has dropped significantly, from approximately $95 billion in mid-December to $54.6 billion in early January, marking a decline of nearly 43%.
Should We Be Concerned About Tether?
According to analysts from Matrixport, there’s no reason for alarm regarding Tether. They believe the recent decline in market capitalization and trading volume is seasonal and not indicative of a bearish trend.
#Matrixport Today 📉 – Jan 6: #Stablecoin Trends: A Key Indicator for #Crypto Market Momentum in 2025#cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #BTC #ETH pic.twitter.com/MOUwe85sMP
— Matrixport Official (@Matrixport_EN) January 6, 2025
The “seasonal factor” refers to the holiday period, a time of year when financial market activity traditionally slows down.
Matrixport analysts remain confident that Tether’s trading volume will rebound in the coming weeks. They point out that an increase in stablecoin trading volume is typically a bullish signal for the broader crypto market, indicating fresh inflows of fiat money into the ecosystem.
However, they also caution that if these trends do not reverse, it could signal a consolidation phase for Bitcoin and the broader cryptocurrency market. Only time will tell if Tether regains its momentum or if the crypto market enters a period of stagnation.
Matrixport analysts emphasize that this is not a bearish development but rather a temporary delay in market momentum. However, they caution that if these trends reverse, it could indicate a consolidation phase for Bitcoin and the broader cryptocurrency market.
Too Early to Turn Bearish
Matrixport remains cautious, stating that it is “too early” to adopt a bearish outlook. “Although Tether’s market cap has recently dipped, and trading volumes have fallen sharply, it would be premature to turn bearish at this stage,” the analysts explain.
They suggest that these trends may simply reflect seasonal delays due to the holiday period. “Now that the new year has begun, it won’t be long before we see the market regain its bullish momentum,” they add.
Matrixport isn’t the only one expressing optimism. Axel Adler from CryptoQuant echoes this sentiment, noting that the market is likely to recover as the post-holiday period unfolds. According to Adler, a rebound is expected as market participants re-engage with the crypto space.
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