Billions of Dollars Worth of Tether Transferred to Centralized Exchanges as Negative Outlook Continues for Bitcoin!

The sharp decline in the crypto market last week triggered an inflow of $2.72 billion worth of Tether (USDT) onto centralized exchanges, marking the third-largest inflow of USDT into Ethereum to date.

Tether Inflow to Exchanges Rises to $2.7 Billion as Bitcoin Drops to $90,000

The surge coincided with Bitcoin (BTC) taking a nosedive to nearly $91,000 as trade war fears rocked global markets.

Analysts suggest that the unusually high capital movement was caused by traders depositing additional collateral to cover margin calls and prevent liquidations, as well as opportunistic investors catching the dip to accumulate BTC.

“The significant market decline triggered extraordinary capital flows. In particular, USDT net flows to exchanges reached the third-highest level ever recorded, exceeding $2.72 billion.

Since the sell-off, Bitcoin has recovered and is stabilizing in the $95,000 to $100,000 range. Stablecoins like Tether and its regulated counterpart USDC remain indispensable to crypto trading by providing liquidity and facilitating quick asset purchases.

The latest USDT entry highlights the critical role stablecoins play in times of market volatility, acting as a bridge for traders to quickly react to price movements.

Whether the recent surge in Tether deposits signals ongoing buying pressure or cautious repositioning remains to be seen as the market digests macroeconomic developments.

*This is not investment advice.