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According to data from the Brazilian tax authority, the cryptocurrency market rebounded in January, trading up more than 10% over the previous month. According to market observers, the currency with the largest OTC (over-the-counter) exchanges is still Tether’s USDT.
Crypto Market Moves Again in January, According to Brazilian Tax Authority
The Brazilian tax office, which law requires to receive reports of cryptocurrency movements to collect taxes, has published its cryptocurrency volume statistics for January. The organisation reported an increase in the size of the bitcoin market, with $2.85 billion in transactions occurring over time.
The market increased by more than 10% from December to January due to events that impacted the cryptocurrency industry globally, including the failure of major exchanges and crypto lenders like FTX, Celsius, and Blockfi.
The amount of bitcoin purchased by businesses and individuals was average, higher than December’s records but lower than what was reported in 2022 when the nation set multiple records for cryptocurrency purchases. Only the numbers corresponding to May were greater than those reported for January, but volume increased.
Brazilian Preference for USDT Continues
Brazilians still choose to store and transfer money using Tether’s USDT, the largest stablecoin on the cryptocurrency market. According to the research, the stablecoin was used in transactions worth $2.3 billion in January, reiterating USDT’s superiority over other cryptocurrencies.
Analysts are examining the reasons for Brazil’s large use of USDT, which is expected to increase by more than 50% in 2022. According to reports from January, Brazilians were utilising stablecoins to protect themselves from the effects of inflation and to avoid paying costs associated with using actual dollars in a bank account.
Analysts believe, however, that given the large reported transaction volumes, USDT may be used in more applications. A local cryptocurrency exchange called Mercado Bitcoin’s business director, Fabricio Tota, thinks that institutions and private users may use USDT to transmit money abroad. He explained the following in statements made to Portal do Bitcoin:
“We have been able to see in the volumes reported to the revenue service a very large, very significant volume of USDT that is not on local exchanges. This leads us to believe that this volume is on the main OTC desks and that they meet a different type of demand.“
According to recent reports, some businesses are using USDT to settle payments in Venezuela to protect themselves from the country’s ongoing economic sanctions.
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