The analytic firm, Glassnode, reveals a new startling data about Tether. And the relation between Bitcoin and Tether also confirms from the chart shared by Glassnode. Today, Bitcoin plummeted to $9,507 in a matter of minutes after touching $10,400. This decrease in price happened after the Glassnode noted ATH Tether transfers in cryptocurrency exchanges.
The transfers of Tether to crypto exchanges have witnessed an all-time high value, which is followed by an increase in the price of Bitcoin. After the data reported by Glassnode, the top digital asset spiked to $10,400 once and then returned slightly, but it is still above the key level of $10,000.
The crypto analytic firm finds out that Tether transfers to crypto exchanges have increased to an unprecedented since the few last weeks. The chart is published by Glassnode after using the 7-day SMA (simple moving average). The indicator clearly shows the all-time high surpassing all previous records.
Last time, the value reached its peak position in mid-March when almost all other digital assets faced bearish pressure including Bitcoin. “Given that the inflow exchange volume did not significantly increase, this implies a large amount of small-sized Tether deposits,” Glassnode added.
The recent studies show that the stablecoins have a significant effect on the price values of Bitcoin and other altcoins. Especially, Tether (USDT) is inversely correlated with Bitcoin as its volume in exchanges has a great impact on value.
Inverse Correlation between Bitcoin and Tether
When the price goes high, the volume of Tether in crypto exchanges goes down. For example, the top digital asset was exchanging hands at $9,500 in February, and at the same time, Tether in exchanges was low in amount. On the other hand, when BTC lost half of its value in mid-March, the USDT’s amount in cryptocurrency exchanges surged to a three-month peak position. The same pattern again happened today as BTC price moved down to $9,500 after the crypto analytic firm pointed out the surge in USDT volume in exchanges.