I have been keeping an eye on Tether coin supply as a measure of market sentiment. In this latest market correction, we have seen USDT supply grow from ~309 million coins to a high of ~442 million coins. Tether is based out of Taiwan and has had regulatory issues with US banks and according to their website, Well Fargo has made a point of blocking Tether withdrawals through its banks.
https://tether.to/tether-update/
Tether is backed by US dollars and large holders can ask for dollars for their USDT holdings on demand. This morning, I had checked the market, and QTUM had passed USDT for the 17 spot on Coinmarketcap. I just got home and Tether is now at 19 on CMC and their coin supply dropped by ~15M, most likely meaning that a large holder had turned in their Tether for a withdrawal in dollars.
What does this mean for the market, a large withdrawal from Tether? Is it just somebody desiring their USDT in dollars or is there some sort of problem that a large investor saw with tether's model? I don't know the answer to these questions, and I don't know how this move will affect the market, but Tether's coin supply is definitely something to watch as I has been a useful tool for me in predicting wider crypto market activity.
Happy Trading & Many Prosperous Returns!