Since the market crash on August 5, a total of $1.3 billion USDT has been transferred from the Tether Treasury to several major cryptocurrency exchanges, as reported by Lookonchain. The exchanges receiving these funds in a massive volume include Kraken, Binance, Bitfinex, Cumberland, OKX, Coinbase, and Bullish.
1.3B $USDT has been transferred from #TetherTreasury to exchanges since the market crash on Aug 5! pic.twitter.com/BYtMqgVRyZ
— Lookonchain (@lookonchain) August 9, 2024
USDT Boosts Bitcoin Prices as Traders Buy the Dip
USDT is a stablecoin that is linked to the US dollar. It is used as a medium of exchange for buying and selling cryptocurrencies, and transferring between cryptocurrencies.
Based on this knowledge, many believe that when Tether produces more USDT, consequently, it boosts the price of Bitcoin (BTC). This is due to the fact that traders have a tendency of using USDT to buy Bitcoin and other cryptocurrencies especially during dip.
Tether Moves $1.3B USDT to Meet Increased Demand After Price Drop
The timing of this large transfer could also be explained by the increase in demand for USDT once the market crash, and traders wanted to buy the dip. Most investors consider it as a chance to buy assets at a lower price especially when the prices of cryptocurrencies drop hugely. This buying activity increases the circulation of USDT, which is an essential element for these transactions.
Lastly, the $1.3 billion USDT transfer, as per Lookonchain data, shows that Tether might have shifted gear early to meet this demand. It also ensured that there was adequate USDT available on the exchanges for the traders who wanted to take advantage of the lower prices in the market.