Crypto Braces for Uptober as Tether Achieves Record Market Cap

Following a challenging September, the recent movements of the Tether (USDT) stablecoin may signal that October could indeed fulfill its reputation as ‘Uptober’ for the cryptocurrency market.

In recent weeks and months, USDT’s market capitalization has shown a consistent upward trend, surging from approximately $118.8 billion to an impressive $119.2 billion—a new all-time high (ATH)—within just the last seven days, according to data from CoinMarketCap as of the morning of September 23.

USDT 7-day market cap chart. Source: CoinMarketCap

This latest surge is part of a wider increase of $1.5 billion over the last 30 days and about $36 billion over the past year. Such notable shifts in valuation could indicate that many cryptocurrency investors are gearing up for a buying frenzy across various digital assets. It’s common for traders to acquire substantial amounts of USDT, as its stability allows for swift transactions in the ever-changing digital asset landscape.

### Why Investors Are Excited About ‘Uptober’

The enthusiasm surrounding ‘Uptober’ is fueled not only by Bitcoin’s (BTC) remarkable 8.10% rise to $63,464 last week, but also by a general positive sentiment permeating the market. Ethereum (ETH), for example, added $40 billion in the same period.

BTC 5-day price chart. Source: Finbold

In fact, Bitcoin is poised to achieve its strongest September on record, with optimistic projections suggesting it could reach $70,000 during ‘Uptober.’

### Crypto Analysts Predict ‘Dumb Bulls Will Be Rewarded’

Prominent crypto analysts, including Ali Martinez, have indicated that technical indicators are pointing toward the onset of an altseason as September draws to a close.

The #altcoin market cap appears set to surpass $1 trillion soon; it’s merely a matter of time before #altcoinseason kicks off!
pic.twitter.com/NRRa6v3ZOk
— Ali (@ali_charts)
September 22, 2024

On September 21, an X user named Honey articulated a sentiment that many now share about the cryptocurrency markets, stating, “I think we are approaching the part of the cycle where dumb bulls will be rewarded more than smart bears.”

### Bitcoin Bull Run or Altseason?

There remains some debate about whether a Bitcoin bull run will coincide with the anticipated altseason, and which will take precedence. For instance, while analysts like Scient posit that Bitcoin is gearing up for a climb, others, including the well-known trader Credible Crypto, express bearish sentiments about BTC but are optimistic about altcoins such as Solana (SOL) and Curve (CRV).

Many bears targeting $44k could face liquidation if the price surpasses $65k, potentially driving it swiftly towards $68.5k.
Remember, Market makers always target the closest liquidity. Many waiting for $44k have suddenly become bottom longers. A rise wouldn’t be surprising…
— Scient (@Crypto_Scient)
September 23, 2024

Bitcoin’s upcoming movements may shed light on what lies ahead for the broader cryptocurrency landscape, especially as it hovers near a price level that could disrupt the prevailing trend of lower lows and lower highs that characterized much of the summer.

### Could Tether Trigger a ‘Crashtober’ Instead?

However, there are broader systemic risks tied to Tether’s increasing dominance, now estimated at about 69%. The company has long faced scrutiny over its claims regarding dollar reserves.

Numerous industry commentators, with Bitfinex’ed being one of the most recognizable, have long raised concerns about the sustainability and reliability of USDT, questioning the stability of a stablecoin potentially backed by nothing.

“It never ceases to amaze me that all the proof anyone needs about Tether’s 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.'”
— Bitfinex’ed Κασσάνδρα (@Bitfinexed)
September 21, 2024

Tether’s longstanding reluctance to undergo an independent asset audit has done little to quell skepticism or alleviate concerns. Should the most severe allegations prove accurate, it could send shockwaves throughout the crypto market.

Nonetheless, it’s essential to note that, as of now, there is no conclusive evidence to suggest that USDT is unbacked. If its recent market surge is indeed legitimate, then a particularly robust October for digital assets may be on the horizon.