The market capitalization of USDT at $120 billion may spill over to Bitcoin and Ethereum, ending its seven-month downward trend and saving the narrative of 'Uptober.' Tether's market capitalization of its dollar-pegged stablecoin has broken the record of $120 billion for the first time, indicating a potential rebound in cryptocurrency. Stablecoins are the main gateway between fiat currency and digital assets. An increase in the supply of stablecoins is often used as a signal to predict an upcoming bull market rebound, as it suggests that investors are buying stablecoins in large quantities before investing in cryptocurrencies. The growing USDT supply may help catalyze the next price rebound for Bitcoin (BTC). In August, after Bitcoin's price dropped to a five-month low of over $49,500 on August 5, Tether minted $1.3 billion in USDT within five days. By August 9, the $1.3 billion in USDT helped Bitcoin rebound over 21% from the market bottom on August 5, trading at $60,271. The increasing supply of Tether's stablecoins may catalyze the next round of 'Uptober' rebound (October in cryptocurrency slang), as historically this month has been favorable for Bitcoin prices. From Tether's fund flows, a large portion of funds has been sent to some of the largest centralized exchanges (CEX), indicating impending buying pressure from investors. Data from Arkham Intelligence shows that in the past 48 hours, Tether's funds sent over $66 million worth of stablecoins to Binance and over $20 million worth of USDT to Kraken exchange. Conversely, insufficient inflows of stablecoins typically lead to adjustments in the cryptocurrency market. On August 12, due to institutions temporarily halting purchases of USDT, Bitcoin's price fell below the psychological barrier of $60,000, correcting nearly 4%. Based on historical chart patterns, some analysts expect Bitcoin to rebound to $92,000 within three months after experiencing a downward trend in September. According to CoinGlass data, October is the second-best month historically for Bitcoin prices, with an average return of 21%, second only to November, where Bitcoin's average monthly return exceeds 46%. In the year preceding Bitcoin's halving in 2020, Bitcoin's price rose more than 27% in October and over 42% in November, with this surge lasting six months until March 2021. According to renowned cryptocurrency analyst Rekt Capital, to confirm that Bitcoin may break out from its current 'crab walk,' this week's closing price needs to exceed $68,700. The continuous increase in Bitcoin ETF inflows may help with a potential breakthrough for Bitcoin. On October 17, the total net flow of Bitcoin ETFs surpassed a record $20 billion, which occurred just 10 months after their launch. In contrast, gold ETFs took nearly five years to break this $20 billion mark.

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