Whales Are Increasing USDT Reserves on Crypto Exchange Bitfinex
Large investors with a minimum balance of $100,000 in Tether (USDT) are contributing to the increase in stablecoin volume on Bitfinex.
According to CryptoQuant, these high-volume traders have been closing their positions using borrowed funds, which has resulted in a rise in USDT reserves.
This trend coincides with a decline in Bitcoin (BTC) price and has caused the USDT volume on the exchange to jump from $5.3 million to $190 million in just a few days. CryptoQuant analysts view this movement of USDT as a sign of potential upcoming volatility.
Tether recently announced their purchase of over $360 million worth of Bitcoin earlier this year, increasing their reserves to 66,400 BTC, equivalent to $2.7 billion.
In mid-January, Santiment analysts also observed that USDT and USDC whales were accumulating a significant portion of the total supply of leading stablecoins, at 33.98% and 35.49%, respectively.
By holding large amounts of fiat-backed digital currencies, with balances ranging from $100,000 to $10 million, these holders hedge against market uncertainty.
