Whales Move $1B USDT Off Crypto Exchanges In The Past Four Days

In a recent update, market intelligence platform Santiment reported that there had been a surge in large transfers of stablecoin Tether (USDT) over the past year, with eight of such transactions valued at over $1 billion.

According to the report, four of the large transfers have occurred in the last ten days alone, compelling a significant shift in the crypto market. Santiment noted that the enormous transfers of USDT were likely due to concerns over the stability of USDC, another stablecoin that recently reported over $3 billion in exposure to a bankrupt US bank.

As a result, whales, large crypto holders, have been moving their USDT out of exchanges at an increased rate, the report claimed.

?? There have been 8 #Tether transfers valued at $1 billion or more over the past year. 4 of them have come in the past 10 days. Whales have moved $USDT out of exchanges at a rapid rate with the bank collapse and $USDC concerns being big contributors. https://t.co/lm0luYywj9 pic.twitter.com/lIaAc1BeVD

— Santiment (@santimentfeed) March 15, 2023

On the other hand, some crypto enthusiasts argued that the massive transfers by crypto whales indicate that they were only exchanging their stablecoin positions for Bitcoin (BTC). According to data from the market tracking platform, CoinMarketCap, BTC fell below $19k last Friday. However, the coin rebounded within four days to a nine-month high of $26,500 amid the crisis in the US banking sector and numerous bank runs.

? It’s been a #crypto maxi’s dream scenario today, with bank fears at a multi-year high, and the #Fed potentially now cutting (instead of increasing) rates as a result. Our fresh insight covers how this has allowed #Bitcoin & others to create separation. https://t.co/ZQGc0aHK3W pic.twitter.com/810GfXth9q

— Santiment (@santimentfeed) March 13, 2023

Additionally, Santiment said the rise in BTC price could be attributed to multiple factors, such as an increase in spot-driven buying, network growth, and a decline in the value of USD. The data firm also expressed that the widespread fears in the banking sectors following the collapse of three prominent US banks are a dream scenario for crypto maxis as it would make crypto more appealing.

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