Figures from the Brazilian tax authority indicate that the cryptocurrency market experienced a resurgence in January, with transactions up more than 10% compared to December. Tether’s usdt continues to be the currency that moves the most volume, a reality related to OTC (over-the-counter) operations, according to market analysts.
Crypto Market Moves Again in January, According to the Brazilian Tax Authority
The Brazilian tax authority, which receives reports of cryptocurrency movements by law for collection purposes, published its cryptocurrency volume reports for January. The institution revealed growth in the volume of the cryptocurrency market, with $2.85 billion traded during the period.
Compared to December, the market saw growth of more than 10%, recovering after the events that have been affecting the cryptocurrency sector globally, such as the bankruptcy of several exchanges and cryptocurrency lenders such as FTX, Celsius and Blockfi. .
The number of businesses and individuals buying cryptocurrency was average, stronger than December records, but down compared to what was reported during 2022 as the country broke several cryptocurrency purchase records. However, the volume grew more, with only the figures for May being higher than those reported for January.
Brazilian preference for USDT keep going
tying of USDT, the largest stablecoin in the cryptocurrency market, remains the preferred option for Brazilians to store and move money. The report recorded $2.3 billion in transactions using the stablecoin in January, a number that confirms the leadership of USDT over other cryptocurrencies.
The meaningful use of USDT in the country, with growth of more than 50% in 2022, has analysts investigating the reason why Brazilians are using this dollar-linked asset. Reports in January suggested that Brazilians were turning to stablecoins to protect themselves from the pains of inflation and also to avoid paying fees for using real dollars in a bank account.
However, analysts believe that USDT it could be used in more ways, given the high transaction volumes reported. Fabricio Tota, commercial director of Mercado Bitcoin, a local cryptocurrency exchange, believes that USDT it could be being used by institutions and individuals to send money abroad. In statements given to the Portal do Bitcoin, he explained:
We have been able to see in the volumes reported to the revenue service a very large, very significant volume of USDT that’s not on the local exchanges. This leads us to believe that this volume is found on the main OTC desks and that they serve another type of demand.
Recent reports indicate that some companies are using USDT to settle payments in Venezuela, avoiding the risks of being affected by the economic sanctions that the country is currently suffering.
What do you think about the January cryptocurrency market report in Brazil? Tell us in the comment section below.
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