There have been eight Tether transfers valued at $1 billion or more of which four have occurred within the past ten days.
Whales are pulling their USDT out of exchanges at a rapid pace, in response to bank collapse and stablecoin de-pegging concerns.
Stablecoin on exchanges represent buy side demand, it is likely that USDT’s removal from exchanges is therefore a sell signal.
Analysts at crypto intelligence tracker Santiment identified four Tether (USDT) transfers valued at $1 billion or more within the past 10 days. In response to the tumultuous events of the past week, including the collapse of several crypto-friendly banks and stablecoin de-pegging, large wallet investors are pulling USDT out of exchanges.
Stablecoins typically represent demand side liquidity, therefore removal of Tether from exchanges is considered a sell signal.
Since stablecoin reserves on exchanges typically represent the demand for cryptocurrencies like Bitcoin, the decline in stablecoin reserves could be perceived as a sell signal. Further, smaller stablecoin reserves on exchanges imply reduced buying pressure on assets like Bitcoin, negatively influencing its price.
Tether’s minting of $2 billion USDT tokens raises alarm
The largest stablecoin by market capitalization, Tether minted a whopping $1 billion USDT tokens on Ethereum and Tron blockchains on Wednesday. The stablecoin’s market capitalization climbed from $72.1 billion to $74.6 billion between March 12 and March 14, raising alarm among crypto investors.
