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The amount of ETH in wallets has grown by 65% ​​since the beginning of the year, capitalization of the USDT has reached a record $120 billion.

At the time of publication, when Ether is trading at a price of $2,645, this represents approximately $50.2 billion locked in accumulation addresses – addresses of long-term investors with no previous withdrawals. Konstantinas Sizovas emphasizes that the amount of Ethereum in accumulation addresses has increased by 65% ​​since January, when these addresses held about 11.5 million ETH. And he asks not to forget that accumulation addresses are an important indicator for traders and market participants, as they provide an idea of ​​​​the general confidence in the long-term prospects of Ethereum.

Since their launch on July 23, spot Ethereum ETFs have recorded a total net outflow of $467.3 million, according to Farside data. On October 15, it was reported that Ethereum investors are frustrated as its supply continues to grow despite high network congestion. In a recent blog post, Ethereum founder Vitalik Buterin acknowledged the issue and suggested that improving transaction times with solutions like single-slot finality could help. On the same day, the total Ethereum addressable futures market exceeded 5 million ETH for the first time, up 12% from four weeks ago. This has caused concern among traders, as they believe it could be a warning sign. A surge in demand for ETH leveraged positions usually precedes major price corrections. Meanwhile, Tether (USDT), the world’s largest stablecoin according to the company’s website, which offers real-time updates on the stablecoin’s supply, surpassed the $120 billion mark on Oct. 20. USDT’s growing supply could help catalyze Bitcoin’s next rally, BTC at $68,227. In August, Tether minted $1.3 billion USDT in five days after Bitcoin’s price hit a five-month low above $49,500 on Aug. 5. By Aug. 9, $1.3 billion USDT had helped Bitcoin recover more than 21% to trade at $60,271 from its Aug. 5 market bottom.

Recall that stablecoins are the primary bridge between the worlds of fiat currencies and digital assets. Growing stablecoin supply is often used as a signal to predict an upcoming bull run, as it suggests that investors are buying up stablecoins before investing in cryptocurrencies.

Growing Tether stablecoin supply could catalyze the next “Uptober” (crypto slang for October) rally, as the month is historically bullish for Bitcoin prices. Looking at Tether treasury flows, a significant portion is being sent to some of the largest centralized exchanges (CEXs), signaling incoming pressure from investors. Data from Arkham Intelligence shows that over the past 48 hours, Tether treasuries have sent over $66 million in stablecoins to Binance and over $20 million in USDT to Kraken. Conversely, a lack of stablecoin inflows often leads to a correction in the crypto market. On August 12, Bitcoin price fell below the psychological $60,000 mark, leading to a correction of almost 4% as institutions temporarily stopped buying USDT.

Could Bitcoin Breakout Before October Ends? Based on historical charts, some analysts were expecting a three-month rally for Bitcoin to $92,000 after the September slump. October has historically been the second-best month for Bitcoin price, according to CoinGlass data, with an average return of 21%, second only to November, which averages over 46% in Bitcoin’s monthly returns. And recall that during the previous year of Bitcoin’s halving in 2020, the price rose over 27% in October and over 42% in November in a six-month rally that lasted until March 2021. The potential breakout could be supported by positive ETF inflows this week. Bitcoin ETFs surpassed a record $20 billion in total net flows on October 17, within 10 months of launch.