Correlation between USDT circulating supply and Bitcoin’s price

Correlation-between-USDT-circulating-supply-and-Bitcoins-price

Since the end of 2022, the circulating supply of USDT has increased by around 30 billion. Each increase in supply has traditionally had a positive effect on the development of the Bitcoin price.

Bitcoin has rallied in the context of these USDT supply spikes and we have seen a turnaround and a sign of improving liquidity in the Bitcoin market due to the new capital inflows that could be caused by the anticipation of a Bitcoin spot ETF and increased investors interest. 

Data analysis reveals a high correlation between USDT supply and Bitcoin price movement, leading to an increase in volume and a dynamic environment for the Bitcoin price.