The recent decline in the market value of Tether (USDT) It could simply be related to the seasonal holiday pause matrixsport, Which indicates that the market may regain its momentum soon.
Let’s see all the details in this article.
Doesn’t a decline in the market value of USDT necessarily indicate a bear market?
The cryptocurrency market has closely observed the recent decline in the market cap of Tether USDT, the largest stablecoin by market cap.
From the peak of $141 billion reached on December 19, 2024, USDT has seen a 2.8% decline, according to Data from Queen Gekko.
In parallel, daily trading volumes decreased by 64%, falling from approximately $154 billion in mid-December to $55 billion on January 6, 2025.
These numbers raised questions among investors and analysts about the potential importance of this trend.
However, crypto financial services platform Matrixport says it is too early to interpret this decline as a bearish signal for the cryptocurrency market.
Matrixport published Analysis on social network Slow down In business activities due to the Christmas holiday:
“Although Tether’s market capitalization has recently declined and trading volumes have declined, it may be too early to turn bearish. These trends could simply reflect a seasonal pause over the Christmas holiday period. With the start of the new year, it won’t be long before To see whether the market’s bullish momentum will resume or not.
According to Matrixport, the increase in stablecoin trading volumes is generally a Positive indicator For the cryptocurrency market, because it reflects a greater flow of fiat money into the digital ecosystem.
Conversely, a decline in these volumes could indicate a phase of consolidation or a pause in the uptrend. However, the company emphasizes that the holiday season is historically a period of low activity in financial markets, including CryptoValue markets.
Speculation about MiCA and community reactions
Matrixport didn’t just highlight the impact of the holidays on the market.
axel adler, On January 4, an analyst at CryptoQuant noted that Bitcoin needs an increase in trading volumes to support strong bullish momentum, and he expects that to happen once the holiday period is over.
“The market needs to accumulate more trading volume for a big move,”
Adler stated, noting that the current calm may be temporary.
Meanwhile, some rumors have linked the decline in USDT’s market value to the full implementation of the EU’s regulation on cryptoasset markets (MiCA).
Some online reports have indicated that European cryptocurrency exchanges will have to remove USDT from their platforms by December 30, 2024.
However, these statements It is not supported Through official indicators from local regulatory authorities.
The European Securities and Markets Authority (ESMA), which is responsible for overseeing MiCA compliance, did not provide specific comments on the status of USDT in relation to the new regulations.
The cryptocurrency community quickly reacted to this speculation, calling it… FUD (Fear, uncertainty and doubt – Bora, Incertiza e Doppio).
Several X Platform members criticized reports indicating an imminent delisting of USDT from major European exchanges. One industry observer has already written:
“All the ‘news’ about Tether USDT being removed from major global cryptocurrency exchanges due to the EU’s MiCA law was just FUD.”
The reality of the European market
Despite the rumours, USDT trading has continued without major interruption in Europe. Exchanges like Binance have confirmed that USDT will remain available On their platforms until further notice.
At the end of 2024, Binance stated the following:
“We will continue to support USDT and closely monitor regulatory developments.”
The truth of that Coinbase The deletion of USDT is not directly related to European regulations, but falls within a series of strategic decisions made by the exchange.
Other operators in the European market did not follow the same path, which indicates this There is no immediate regulatory pressure To remove USDT from trading platforms.
As we know, Tether USDT plays a crucial role in the cryptocurrency ecosystem as the main stablecoin used to facilitate exchanges and provide a haven from the typical volatility of the cryptocurrency market.
A temporary decrease in market capitalization or trading volumes can affect liquidity dynamics. However, it does not necessarily indicate a fundamental change in market conditions.
Investor confidence in USDT remains strong, despite periodic concerns about the transparency of Tether reserves.
The company has undertaken many initiatives to improve transparency, Including publishing certification reports on its reserves by independent auditors.