ChainCatcher news, Matrixport released today’s chart indicating that the performance of stablecoins is one of the important indicators reflecting market trends. Typically, an increase in stablecoin trading volume indicates bullish market sentiment, while Tether’s market cap growth reflects more fiat money flowing into the cryptocurrency ecosystem.
However, when these trends reverse, it often means that Bitcoin and the entire crypto market are entering a correction phase. Recently, Tether’s market cap has declined and trading volume has also declined, but claiming that the market has turned bearish at this point may be premature. This change could simply be a seasonal lull due to the Christmas holidays.
As the new year begins, we will soon know if the market will regain its bullish momentum.
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