Analyst: The surge in USDT activity indicates a large amount of buying power off the market, CPI data may alleviate price pressure
Vincent Liu, Chief Investment Officer at Kronos Research, said that traders often accumulate USDT during market downturns to look for buying opportunities, and the increased buying pressure can help cryptocurrency prices recover. He speculated that the increase in USDT wallet activity may reflect traders taking advantage of recent market volatility. Liu pointed out that a surge in USDT activity is a bullish signal, indicating substantial off-market buying power, but the recovery of the crypto market may depend on macroeconomic conditions, regulatory clarity and investor confidence among other factors. He added: "With February's inflation rate falling to 2.8%, below recent CPI data expectations, this could alleviate pressure on cryptocurrency prices and indicate a more favorable environment. Furthermore, the Federal Open Market Committee (FOMC) meeting scheduled for March 18th could further clarify interest rate and monetary policy direction."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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