Bitcoin’s recent price decline to almost $90,000 sent shockwaves through the market, but it also triggered an extraordinary influx of Tether (USDT) into centralized exchanges. According to blockchain analytics firm IntoTheBlock, USDT net inflows exceeded $2.72 billion on Ethereum alone, marking the third-largest surge on record.
The sharp increase in stablecoin deposits suggests that traders were actively responding to the volatility, either by covering margin calls or capitalizing on the price drop to buy Bitcoin at a discount. “The market’s substantial downturn triggered unusual capital flows,” IntoTheBlock noted in its weekly newsletter, highlighting the role of traders scrambling to shore up their positions and opportunistic investors seeking to take advantage of the decline.
Market Reaction and Stability
Bitcoin has since recovered modestly, trading between $95,000 and $100,000, according to CoinDesk data. This range suggests that while the initial panic may have subsided, investors remain cautious. Stablecoins like Tether and USDC continue to play a crucial role in the cryptocurrency ecosystem, often serving as the primary vehicles for purchasing assets during periods of heightened volatility.
IntoTheBlock’s data also reveals that of the total USDT supply, 90.9% of addresses are currently “at the money,” meaning they are holding USDT at its stable price of $1.00. Meanwhile, 5.49% are considered “in the money,” and 3.61% are “out of the money.” These figures reflect the relative stability of Tether amid the broader market turbulence.
Large-Scale Transactions and Market Sentiment
In the past 24 hours alone, large Tether transactions amounted to $3.82 billion, with a seven-day high of $21.91 billion on February 3. Such high transaction volumes signal ongoing institutional and whale activity, which may influence market direction in the coming days.
Investor sentiment appears divided. Data shows that bulls and bears were evenly matched over the last week, with 119 addresses classified in each category. This balance suggests that while some traders anticipate further recovery, others remain wary of another downturn.
