USDT Inflows Surge as Bitcoin Dips Amid Market Volatility

Market Cap $3,140,862,924,409
24h Volume $30,688,595,583
BTC Market Cap $1,899,568,434,151
BTC Dominance 60.5%

10 Feb, 2025

Tether Inflows to Exchanges Surged to $2.7B During Recent BTC Price Drop to $90K, Analytics Firm Says

USDT Inflows Surge Amid Bitcoin’s Market Turbulence

In a dramatic display of market activity, centralized exchanges registered an unprecedented $2.72 billion inflow of tether (USDT) on Ethereum alone, coinciding with Bitcoin’s sharp drop to nearly $91,000 last week. This marks the third-largest net inflow of USDT ever recorded, according to blockchain analytics firm IntoTheBlock.

"The market's substantial downturn triggered unusual capital flows," IntoTheBlock reported in its weekly newsletter. "USDT netflows into exchanges surged as traders deposited additional collateral to manage margin calls and prevent liquidations, while others engaged in aggressive 'buy-the-dip' activity, particularly targeting BTC."

Following the influx, Bitcoin has stabilized within the $95,000–$100,000 range, per CoinDesk data. The surge in USDT, alongside its regulated counterpart USDC, underscores the critical role stablecoins play in crypto trading, serving as a primary vehicle for liquidity and investment during periods.

Market analysts believe the sharp increase in stablecoin deposits signals strong investor confidence in Bitcoin’s long-term trajectory. "Historically, large inflows of USDT onto exchanges often precede significant market moves," said a trader at a leading crypto fund. "This suggests that many investors are preparing to re-enter the market, betting on a recovery."

Despite the recent turbulence, the crypto market remains resilient, with on-chain metrics indicating that institutional and retail demand for Bitcoin is still robust. The coming weeks will be crucial in determining whether this influx of capital translates into a sustained price rebound or if further downside volatility is on the horizon.

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