Recent enquiry shows that in that location is an inverse human relationship between the percentage of the Tether (USDT) stablecoin on exchanges and Bitcoin'southward (BTC) price.

Cryptocurrency market insights house Santiment published analysis showing that the percentage of USDT held on exchanges is inversely related to Bitcoin's price. In a May four tweet, the house noted that the contempo correction probably is not a tendency inversion in Bitcoin's move:

"In spite of the modest $BTC correction over the weekend, prices are outset to rebound close to $9,000 again. According to our metrics, one thing that is still trending in the right direction is the percent of $USDT on exchanges. As this chart conspicuously indicates, there is an changed correlation between Bitcoin'due south cost and USDT's supply on exchanges."

Santiment as well explained that since the percentage of USDT held on exchanges is decreasing, Bitcoin could go beyond $9,000 again.

Neither Santiment nor Tether answered Cointelegraph's enquiry as of printing time.

Stablecoins' market caps grow

Every bit the cryptocurrency market saw a major downturn in mid-March, altcoins saw their market caps grow. Still, as Cointelegraph reported at the time, Tether — the largest stablecoin past total market value — only gained about 0.5% in four weeks, while Circle's USD Coin (USDC) saw a 40% increase.

Furthermore, during the contempo Bitcoin's ascent to $9,000 Tether minted over 160 one thousand thousand new tokens inside 24 hours in only two transactions.