[Analysis] "Tether (USDT), Despite Decrease in Market Cap and Volume, Not a Bearish Signal for Crypto Market"

With the full implementation of the European crypto law MiCA on the 30th of last month, Tether (USDT)'s market capitalization and trading volume decreased, but it is difficult to see this as a bearish signal for the market, according to analysis.

On the 6th, crypto service provider Matrixport stated in its 'Chart of the Day: Stablecoin Trend' report, "Although Tether's market cap has recently decreased and trading volume has declined, it may be premature to judge that the market has turned bearish," adding, "This (decrease) trend may be due to seasonal factors such as reduced trading volume during Christmas and holiday periods."

The decline in Tether's market cap occurred as several EU-based exchanges delisted USDT trading pairs due to non-compliance with the MiCA law.

The report added, "We are not far from the day when we can confirm whether the bullish momentum will resume."

Typically, an increase in the issuance and holding of stablecoins can act as buying pressure in the market, considered a bullish signal. Conversely, it can be interpreted as a decrease in demand for crypto assets.