Centralized crypto exchanges saw a record-breaking amount of Tether (USDT), the leading stablecoin pegged to the US dollar last week.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
2 mins read
Last week, Bitcoin price BTC $83 828 24h volatility: 2.4% Market cap: $1.66 T Vol. 24h: $21.85 B saw a crazy reversal that saw its value settling very close to $91,000. The price crash, which came about as a result of US trade war fears, impacted the broader market as the majority of coins also bled.
Surprisingly, however, the crash did bring about some unexpected outcomes such as an unusual capital flow that analytic platform IntoTheBlock recently captured in its weekly newsletter.
According to the platform, centralized cryptocurrency exchanges saw a record-breaking amount of Tether USDT $1.00 24h volatility: 0.0% Market cap: $143.45 B Vol. 24h: $43.51 B , the leading stablecoin pegged to the US dollar. IntoTheBlock is quoted as saying:
“Notably, USDT netflows into exchanges reached the third-highest level ever recorded, exceeding $2.72 billion (on Ethereum alone).”
While the movement of funds is basically a result of investors seeking some sort of stability in a time of chaos, IntoTheBlock may have highlighted two factors responsible.
First, they claim that traders sought additional collateral to manage margin calls and prevent their positions from being liquidated as Bitcoin’s value spiraled downwards.
In addition to that, they also say that the crash presented the perfect buy-the-dip opportunity, which traders took with no hesitation.
Following last week’s price instability, however, it appears that the dust might already be settling. Bitcoin seems to have found rest within the $95,000 to $100,000 range.
Without a doubt, Tether, alongside its regulated counterpart USDC USDC $1.00 24h volatility: 0.0% Market cap: $59.07 B Vol. 24h: $9.86 B , is fast becoming an invaluable part of the crypto market. Most especially for their primary role as a means of funding crypto purchases.
Beyond this, however, Tether has more plans and has been investing with a focus on expanding its influence worldwide. Recently, the company announced a $775 million investment in video-sharing platform Rumble. The move is a statement of intent from Tether towards diversifying its portfolio and strengthening its presence beyond crypto.
Also, Tether is actively working on relocating its headquarters to El Salvador, a country otherwise known as the Bitcoin heaven. By operating out of a crypto-friendly location like El Salvador, Tether is showing its commitment to being more than just a stablecoin. The firm wants to prove itself as an active participant in the broader financial and technological environment.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
