Tether Inflows Surge to $2.7B as Bitcoin Drops to $90K Amid Market Turmoil
Bitcoin (BTC) experienced a sharp dip to approximately $91,000 last week due to growing trade war concerns, and during this market plunge, centralized exchanges saw an influx of $2.72 billion in Tether (USDT), the leading dollar-backed cryptocurrency, according to analytics firm IntoTheBlock.
The unusual surge in Tether flows, which reached the third-highest level ever recorded, is attributed to a combination of factors. Traders likely deposited more USDT to cover margin calls and avoid liquidations, while others capitalized on the opportunity by engaging in substantial “buy-the-dip” activity focused on Bitcoin.
Bitcoin’s price has since stabilized between $95,000 and $100,000, according to CoinDesk. Both Tether and its competitor USDC remain key tools for facilitating crypto purchases and maintaining stability amid volatile market conditions.
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