$1B USDT Moved By Crypto Exchange In 4 Days, What Are The Whales Up To?
Crypto whales transfer USDT
There is no doubt that the crypto community has seen big headlines that have affected the market in several ways in recent weeks. However, the latest headline today has raised more curiosity and questions among the community pondering the whale’s next move given the uncertainty in the market as to whether we are in a bull season or a trap.
According to a report from market intelligence platform Santiment, a large transfer of Tethers stablecoin USDT has risen in recent years, with eight of the massive transaction recorded above a value of more than $1 billion.
What are the whales up to now?
While many have wondered the reason behind the strange increase in the market despite a cause of a fall, Santiment’s latest report revealed that the increase in the market could be a result of the whale’s massive transfers as out of the four major recorded transactions looked at has found place in the last ten days.
Although many crypto enthusiasts have argued that the large transactions may have been used to move the market or as an exchange for Bitcoin (BTC)Santiment suggested instead that the large transfers were likely due to whales’ concerns over the stability of USDC, a stablecoin issued by Circle that recently reported a $3 billion exposure to troubled Silicon Valley Bank
Although Circle has announced recovery of the $3 billion, Silicon Valley is still experiencing an economic run. Meanwhile, on Monday, HSBC UK, the restricted subsidiary of HSBC, bought Silicon Valley Bank UK for £1 ($1.21). Santiment noted that the “bank collapse and USDC concerns” have caused “major contributors” in the market to move their “USDT off exchanges at a rapid rate.”
Bitcoin (BTC) in a week
As of last week, Bitcoin (BTC) was still seen in a bearish trend as the negative news intensified. Silvergate which offered the industry a payment network that allowed customers to exchange US dollars between crypto exchange accounts 24/7 to match the liquidity needs of the crypto market suspended services last week and closed.
In the same week, one of the leading crypto exchanges KuCoin also had a tough Thursday after New York filed a lawsuit against it for failing to register with the state before allowing investors to buy and sell cryptocurrencies on the platform. But fast-forward a week, and Bitcoin has been quick to recover as the asset has recouped the heavy losses lost amid the downtrend.
As of yesterday, BTC reached a nine-month high of $26,500 despite the ongoing US banking crisis. So far, the BTC spike can be attributed to several factors that include a massive spot-driven buying pressurenetwork growth and a decline in the value of the US dollar (USD).
In accordance Sentimentthe growing fear in banks as well as the Feds potentially now cutting interest rates instead of cutting is nothing but a crypto maxi’s dream scenario as many would now start seeking crypto as an appealing alternative.
Featured image from Unsplash, chart from TradingView
