Preface
Recently, the cryptocurrency market has seen a notable large USDT transfer. According to blockchain data, the transaction involved a large transfer of USDT stablecoins between well-known trading institutions Cumberland DRW and Tether Treasury.
As important players in the cryptocurrency ecosystem, capital flows between Cumberland DRW and Tether are often viewed as important indicators of market movements. The size and timing of the deal have triggered widespread market attention and speculation, possibly signaling upcoming market changes or adjustments to institutional investment strategies.
The specific details of this series of transactions, the underlying reasons, and their impact on the cryptocurrency market deserve in-depth analysis. It may reflect institutional investors' views on the market or herald new investment trends. For more information on Cumberland DRW’s bargain-hunting behavior, please review the previous article.
Transfer path between Cumberland DRW and Tether Treasury
AVAX/AVALANCHE on-chain USDT transfer
Tether Treasury (Tether Treasury) transfers USDT (Avax or Avalanche) to an address starting with 0x1dBb (Cumberland DWR)
The address starting with 0x1dBb (Cumberland DWR) then transfers USDT (Avax or Avalanche) to Binance, OKX and Bybit exchanges.
A large amount of USDT from Tether Treasury flows to Cumberland DRW, and may subsequently enter major exchanges. This may mean that Cumberland DRW is using USDT to purchase cryptocurrencies such as BTC and ETH. This phenomenon may reflect increased institutional investment interest, increased market liquidity, and affect related cryptocurrency prices.
Timing of transfers between Cumberland DRW and Tether Treasury and BTC price changes
AVAX or AVALANCHE on-chain USDT transfer
(Figure 1)
(Picture 2)
Figure 1 shows the time points when Cumberland DRW and Tether Treasury transferred USDT and the price changes of BTC in 2024/02 and 2024/03. (AVAX or AVALANCHE)
Figure 2 shows the transfer time, transfer amount and BTC increase between Cumberland DRW and Tether Treasury in 2024/02 and 2024/03.
Yellow arrow or mark: the time point when the transfer occurs and ends
Green arrow or mark: time point between transfer happening and ending
In 2024/02, a total of 269M USDT stablecoins were transferred, and then the increase in BTC from the beginning to the end of the transfer (yellow arrow) was 35.78%. Then, a total of 185M USDT of stablecoins were transferred in 2024/03, and the subsequent increases in BTC from the beginning to the end of the transfer (yellow arrow) were 9.87% and 7.47% respectively.
(Figure 1)
(Picture 2)
Figure 1 shows the time points when Cumberland DRW and Tether Treasury transferred USDT and the price changes of BTC in 2024/04 and 2024/05. (AVAX or AVALANCHE)
Figure 2 shows the transfer time, transfer amount and BTC increase between 2024/04 and 2024/05 Cumberland DRW and Tether Treasury.
Yellow arrow or mark: the time point when the transfer occurs and ends
Green arrow or mark: time point between transfer happening and ending
In 2024/04, a total of 215M USDT stablecoins were transferred, and then from the beginning to the end of the transfer (yellow arrow) BTC increased by 12.78% and first fell by 10.12% and then increased by 12.66%.
Next, a total of 100M USDT of stablecoins was transferred in 2024/05, and then from the beginning to the end of the transfer (yellow arrow) BTC increased by 6.43% and decreased by 6.97%.
(Figure 1)
(Picture 2)
Figure 1 shows the time points when Cumberland DRW and Tether Treasury transferred USDT and the price changes of BTC in 2024/06 and 2024/07. (AVAX or AVALANCHE)
Figure 2 shows the transfer time, transfer amount and BTC increase between Cumberland DRW and Tether Treasury in 2024/06 and 2024/07.
Yellow arrow or mark: the time point when the transfer occurs and ends
Green arrow or mark: time point between transfer happening and ending
In 2024/06, a total of 50M USDT stablecoins were transferred, and then the decline of BTC from the beginning to the end of the transfer (yellow arrow) was 17.82%.
Then, a total of 190M USDT of stablecoins were transferred in 2024/07, and the subsequent increase in BTC from the start to the end of the transfer (yellow arrow) was 22.76%.
(Figure 1)
(Picture 2)
Figure 1 shows the time point when Cumberland DRW and Tether Treasury transferred USDT and the price changes of BTC in 2024/08. (AVAX or AVALANCHE)
Figure 2 shows the transfer time between Cumberland DRW and Tether Treasury in 2024/08, the transfer amount and the increase in BTC.
Yellow arrow or mark: the time point when the transfer occurs and ends
Green arrow or mark: time point between transfer occurrence and end
Finally, a total of 230M USDT stablecoins were transferred in 2024/08, and then the increase in BTC from the beginning to the end of the transfer (yellow arrow) was 19.39%
The picture above shows the amount of USDT received by Cumberland DRW from Tether Treasury (monthly) (AVAX / AVALANCHE)
From this chart, they are February to August 2024, a total of 7 months. We can then find from the middle chart that the months with the highest transfer amounts are 2024/02, 2024/08 and 2024/04. It also shows that Cumberland DRW received the most USDT in these three months, so the purchasing power will naturally increase after transferring USDT to the exchange.
The increase in BTC is as follows:
2024/02: Increase 35.68%
2024/08: Increase 19.39%
2024/04: an increase of 12.78% and a decrease of 10.72% before an increase of 12.66%
The growth rate in these three months is higher than that in other months.
However, in the months 2024/05 and 06. The transfer of USDT has dropped significantly, which has also led to a significant drop in price. (No purchasing power)
Related links
Summarize
Fund flow: This article mainly shows that Cumberland DRW obtains USDT from the Tether Treasury on the AVAX or AVALANCHE chain, and then transfers it to major exchanges, which may be used to purchase cryptocurrencies.
Market Impact: Large USDT transfers often signal increased institutional participation and potential price increases.
Price Correlation: Months with larger USDT transfer volumes (February, August, and April 2024) tend to be accompanied by significant increases in BTC prices. In the months with less USDT transfers (May and August 2024), the price of BTC has no obvious purchasing power, causing a decline.
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