‘Uptober’ looms for crypto as Tether’s market cap hits a record high 
Cryptocurrency Sep 23, 2024 Share
After a tough September, the non-subtle moves of the Tether (USDT) stablecoin may have offered a subtle hint that October will truly live up to its nickname of ‘Uptober’ for the cryptocurrency market.
Indeed, the market capitalization of USDT has been steadily rising in recent weeks and months and has rocketed from about $118.8 billion to $119.2 billion – a new all-time high (ATH) – in the last seven days alone, per the date retrieved from CoinMarketCap in the morning of September 23.
USDT 7-day market cap chart. Source: CoinMarketCap
The most recent rise follows a market cap increase of $1.5 billion in the last 30 days and of approximately $36 billion in the last 12 months.
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Such changes in valuation could hint that many cryptocurrency investors are preparing for a buying spree of various digital assets.
It is not uncommon for traders to acquire significant amounts of USDT to make their prepared market activities easier due to the stablecoin’s ability to facilitate quick trades in various digital assets.
Why investors are optimistic about ‘Uptober’
The optimism around ‘Uptober’ stems not only from Bitcoin’s (BTC) 8.10% climb to $63,464 last week but also from a broader positive sentiment in the market. Ethereum (ETH) for instance added $40 billion in last week.
BTC 5-day price chart. Source: Finbold
In fact, BTC is now poised to experience its strongest September on record, and there are some hopes it may hit $70,000 during ‘Uptober.’
Crypto analysts predict ‘dumb bulls will be rewarded’
Additionally, prominent crypto analysts, including Ali Martinez, have, in the second half of September, concluded that technical indicators point toward the beginning of an alt season.
The #altcoin market cap looks primed to surpass $1 trillion… It is just a matter of time before #altcoinseason! pic.twitter.com/NRRa6v3ZOk
— Ali (@ali_charts) September 22, 2024
On September 21, an X user known as Honey made a comment highly illustrative of what is now widely expected of the cryptocurrency markets: ‘I think we are approaching the part of the cycle where dumb bulls will be rewarded more than smart bears.’
Bitcoin bull run or an altseason?
Still, there is some debate whether a Bitcoin bull run will coincide with the altseason and which of the two is set to take place.
For example, while analysts like Scient consider the world’s premier cryptocurrency is set for a move up, others – including the prominent trader Credible Crypto – are bearish about BTC but betting on altcoins like Solana (SOL) and Curve (CRV).
A lot of bears aiming for $44k will be liquidated once we tap above $65k which will quickly push us towards $68.5k.
Remember, Market or MM always pushes towards the nearest liquidity.
A lot of $44k waitoors have suddenly become bottom longers.
So won’t be surprised with a up…
— Scient (@Crypto_Scient) September 23, 2024
Bitcoin’s next move might offer some insight into what lies ahead for the broader cryptocurrency market as it is hovering near the price level that would end the trend of lower lowers being followed by lower highs that has been prevalent through much of the summer.
Could Tether cause a ‘Crashtober’ instead?
There may also be a broader, systemic risk in the rising dominance of Tether – now estimated at about 69% – as the company has been facing scrutiny for a long time over faking its dollar reserves.
Indeed, multiple commentators and actors within the industry – an X user known as Bitfinex’ed perhaps being the most recognizable – have long questioned the sustainability and stability of USDT due to the danger of the stablecoin being backed by nothing.
It never ceases to amaze me that all the proof anyone needs about Tethers so-called reserves is… "just trust us".
The whole industry claims to be "Don't trust, verify", but in reality runs on "Trust us, bro"
Tether claims to be so large and make so much money, but can't…
— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) September 21, 2024
Tether’s long-standing promise and evasion of an outside asset audit have done little to deter doubters and alleviate the concerns.
If the most dire allegations are proven correct, it would send shockwaves through the crypto market.
Still, it is worth pointing out that, at press time, there is no definitive proof that USDT is, in fact, unbacked. If its recent market growth has been legitimate, it is more than likely that it will soon translate into a particularly strong October for digital assets.