‘Uptober’ Looms for Cryptocurrency as Tether Market Cap Reaches All-Time High

After a rough September, the subtle movements of stablecoin Tether (USDT) may have given a subtle hint that October will truly live up to its “Uptober” moniker in the cryptocurrency market.

Indeed, USDT’s market capitalization has risen steadily in recent weeks and months, and has soared from approximately $118.8 billion to $119.2 billion—a new all-time high (ATH)—in the last seven days alone, according to data obtained from CoinMarketCap on the morning of September 23.

The most recent increase follows a market capitalization increase of $1.5 billion over the past 30 days and approximately $36 billion over the past 12 months.

Such changes in valuation could indicate that many cryptocurrency investors are preparing to buy various digital assets.

It is not uncommon for traders to purchase significant amounts of USDT to facilitate their prepared market activities due to the stablecoin’s ability to facilitate rapid trading of various digital assets.

Why investors are optimistic about Uptober

Optimism for Uptober is driven not only by Bitcoin (BTC)’s 8.10% rise to $63,464 last week, but also by broader positive sentiment in the market. For example, Ethereum (ETH) added $40 billion last week.

In fact, BTC is now poised to have its strongest September ever, and there are some hopes that it could reach $70,000 during Uptober.

Cryptanalysts Predict ‘Dumb Bulls Will Be Rewarded’

In addition, renowned cryptanalysts, including Ali Martinez, concluded in the second half of September that technical indicators were pointing to the start of an alternative season.

On September 21st, user X, known as Honey made a comment quite illustrative of what is now widely expected from cryptocurrency markets: “I think we are getting to the part of the cycle where dumb bulls will be rewarded more than smart bears.”

Bitcoin bull run or alternative season?

However, there is debate as to whether the Bitcoin bull run will coincide with the alternative season and which of the two events will occur.

For example, although analysts like Scientific believe that the main cryptocurrency in the world is set for growth, others, including the famous trader Reliable cryptocurrency – are bearish on BTC, but are betting on altcoins such as Solana (SOL) and Curve (CRV).

Bitcoin’s next move could provide some insight into what’s in store for the broader cryptocurrency market as it hovers near a price level that would end the trend of lower lows followed by lower highs that has prevailed for much of the summer.

Could Tether cause “Crashtober” instead?

There may also be a broader systemic risk in Tether’s growing dominance – now estimated at around 69% – as the company has long been under scrutiny for falsifying its dollar reserves.

Indeed, numerous commentators and industry figures – user X, known as Bitfinex created Perhaps the most recognizable, the sustainability and stability of USDT has long been questioned due to the danger that the stablecoin is not backed by anything.

Tether’s long-standing promises and avoidance of external asset audits have done little to deter doubters or ease concerns.

If the most damning accusations turn out to be true, it will send shockwaves through the cryptocurrency market.

However, it is worth noting that at the time of publication, there is no definitive evidence that USDT is in fact unbacked. If the recent market rally was legitimate, it is more than likely that it will soon translate into a particularly strong October for digital assets.