USDT Soars IDR 56 Trillion: Abundant Liquidity, But No Impact On Crypto Market Prices

USDT jumped IDR 56 trillion (Photo; Doc. Capital)

JAKARTA - The global crypto market has just experienced a significant increase in liquidity with the addition of USDT worth 3.65 billion US Dollars (around Rp56 trillion) over the past 30 days. However, most of these funds have not yet been allocated and have not had a significant impact on price movements in the crypto market. This phenomenon has led to speculation among investors and analysts about the potential market movement in the future.

According to a recent analysis of CryptoQuant, this capitalization increase shows the entry of large external capital into the crypto market. The addition of USDT (Tether) supply, stablecoins guaranteed by assets from the traditional financial sector, generally signals that there is increasing demand for digital assets. However, in this case, incoming funds have not been fully used to buy crypto assets.

Most of this new liquidity is still silent and has not directly affected the price of assets in the market. This creates hidden forces' that have the potential to quickly change market conditions if the funds are started investing.

Institutional investors are suspected of taking advantage of more careful tactics in managing capital entry into the market. Some of them use the Time-Weighted Average Price (TWAP) method or trading algorithms designed to minimize price fluctuations in the short term. With this strategy, market participants slowly enter positions without creating major turmoil in prices.

As a result, although the market looks ready for large movements, the full impact of this new liquidity is not yet fully visible. This creates a market condition full of expectations, awaiting significant movement when the funds start to be actively invested.