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Figures from Brazilian tax authorities reveal cryptocurrency market recovery in January – Bitcoin News
Figures from the Brazilian tax authority indicate that the cryptocurrency market experienced a resurgence in January, with trading increasing by more than 10% compared to December. Tether’s usdt remains the currency that moves the most volume, a reality related to OTC (over-the-counter) trades, according to market analysts.
The crypto market is moving again in January, according to Brazilian tax authorities
The Brazilian tax authority, which receives reports of cryptocurrency movements by law for tax collection purposes, released its crypto volume reports corresponding to January. The institution revealed a growth in the volume of the cryptocurrency market, with $2.85 billion transacted during the period.
Compared to December, the market experienced growth of more than 10%, recovering from events that have affected the cryptocurrency sector worldwide, such as the bankruptcy of several exchanges and cryptolenders such as FTX, Celsius and Blockfi.
The number of companies and individuals buying crypto was average, stronger than December’s records, but falling compared to what was reported during 2022 when the country broke several records for cryptocurrency purchases. Volume grew more, however, and only the figures corresponding to May were higher than those reported for January.
Brazilian preference for USDT continues
Tethers USDT, the largest stablecoin in the cryptocurrency market, continues to be Brazilians’ preferred choice for storing and moving money. The report recorded $2.3 billion in transactions using the stablecoin in January, a figure that confirms the lead of USDT over other cryptocurrencies.
The significant use of USDT in the country, which grew more than 50% in 2022, has prompted analysts to investigate the reason why Brazilians use this dollar-pegged asset. January reports suggested that Brazilians were turning to stablecoins to protect themselves from the pain of inflation, and also to avoid paying fees for using actual dollars in a bank account.
However, analysts believe that USDT can be used in several ways, given the high transaction volumes that have been reported. Fabricio Tota, business director of Mercado Bitcoin, a local cryptocurrency exchange, believes that USDT can be used by institutions and individuals to send money abroad. In statements made to 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 is not on local exchanges. This leads us to believe that this volume is on the main OTC tables and that they are facing a different type of demand.
Recent reports indicate that some companies are using USDT to settle payments in Venezuela, avoiding the risk of being affected by the economic sanctions that the country is currently suffering.
What do you think of the January report on the cryptocurrency market in Brazil? Tell us in the comments section below.
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