Tether’s USDT, the largest stablecoin in the crypto market, has reached an unprecedented $120 billion market cap, raising expectations of an upcoming Bitcoin rally. This milestone, achieved on October 20, marks a significant signal for crypto enthusiasts, who often associate a growing stablecoin supply with an impending bull run.

Stablecoins like USDT serve as a key bridge between traditional fiat currencies and cryptocurrencies. Investors often accumulate stablecoins before entering the market, suggesting that this rise in supply could lead to increased buying pressure on major cryptocurrencies like Bitcoin.

Tether's rapid supply growth has previously sparked rallies. In August, the company minted $1.3 billion worth of USDT in just five days, following a Bitcoin price drop. This helped drive a 21% price recovery, with Bitcoin climbing back to $60,271. As October is traditionally a strong month for Bitcoin, dubbed "Uptober," analysts are optimistic that the $120 billion USDT supply could catalyze another surge.

Data shows that significant amounts of USDT are being sent to major exchanges like Binance and Kraken, further fueling speculation of an imminent Bitcoin price increase. However, historical patterns suggest that if stablecoin inflows slow down, the crypto market could face a correction.

With Bitcoin ETFs recently surpassing $20 billion in inflows, the combination of growing Tether supply and ETF interest could be the perfect storm for a late October breakout. While Bitcoin must close above $68,700 to confirm a rally, many believe the stage is set for a major move.