Analyst: The surge in USDT activity is a bullish signal, and CPI data may alleviate pressure on cryptocurrency prices.
Powered by ChatGPTAccording to a report from Cointelegraph on March 13, Kronos Research Chief Investment Officer Vincent Liu stated that traders typically accumulate $USDT during market downturns in search of buying opportunities, and the increased buying pressure can help cryptocurrency prices recover. He speculated that the rise in $USDT wallet activity may reflect that traders are taking advantage of recent market fluctuations.
Liu pointed out that the surge in $USDT activity is a bullish signal, indicating that there is significant buying power in the over-the-counter market, but the recovery of the crypto market may depend on factors such as macroeconomic conditions, regulatory clarity, and investor confidence. He added, "As the inflation rate dropped to 2.8% in February, below recent CPI data expectations, this may alleviate pressure on cryptocurrency prices and suggest a more favorable environment. Additionally, the upcoming Federal Open Market Committee (FOMC) meeting on March 18 may further indicate the direction of interest rates and monetary policy."