Bitcoin Sees $2.7B Tether Inflows Amid Price Drop, Likely Due to Margin Calls and Bargain Hunting
Bitcoin (BTC) plunged to nearly $91,000 last week, driven by concerns over a potential trade war, but the cryptocurrency market saw a massive $2.72 billion net inflow of Tether (USDT), the world’s largest stablecoin. This surge in Tether deposits occurred on centralized exchanges, marking the third-largest influx ever recorded on Ethereum, according to analytics firm IntoTheBlock.
The firm attributed the unusually high capital inflows to two primary factors: traders adding collateral to manage margin calls and prevent liquidations of underwater positions, as well as substantial “buy-the-dip” activity, with a focus on BTC.
After the price drop, Bitcoin has since found stability within the $95,000 to $100,000 range, as reported by CoinDesk. Tether, along with its regulated counterpart USDC, remains a key asset used by traders to fund crypto purchases during market volatility.
