Study 'Is Bitcoin Really Untethered? (2020)'.
Aside from the period when Alameda Research was Tether's largest customer (before 2022), the pattern of large amounts of ETH Tether being minted right before a 'buy the dip' scenario still holds true today. This includes significant chain-swaps (e.g., Tron USDT to ETH USDT) as well as outright minting.
The reason behind this is unclear. It could be purchasing USD with USDT, or simply a 'market-making thing.' The important point is that this indicator acts as a leading signal.
Written by CQ Senior Intern