New USDT is on the move yet again as another $12M is transferred from Tether Treasury. Whale Alert (@whale_alert) picked up on the transfer earlier today, alerting the cryptocurrency community on Twitter.
$12M USDT On the Move
12,000,000 #USDT (12,038,828 USD) transferred from Tether Treasury to unknown wallet
— Whale Alert (@whale_alert) December 16, 2019
The overwhelming reaction to the transfer was that a significant move was coming. Sadly, it was not the one most were hoping. Bitcoin has since dropped below the critical $7,000 price point and is currently trading at around $6,975. This may be the beginning of another leg down, but it’s still unclear whether this $7,000 price point can be reclaimed.
— Diary of a REKT man (@diaryrektman) December 16, 2019
Tether has been moving large amounts of funds recently, but this has not really changed its relatively anemic market behavior. USDT trading volume has fallen, and its market capitalization has stalled, as BeInCrypto reported today. Other stablecoins like Coinbase-backed USD Coin (USDC), for example, has seen its market capitalization increased substantially in 2019. It has become the second-largest stablecoin after only one year, but it has some catching up to do if it wants to reach Tether’s $4.1B market capitalization.
Despite the choppy market, large transfers are common through USDT. Over $200M of USDT was recently swapped to Ethereum’s chain, with the help of Binance. That same week, another whale moved $85M worth of Tether for just 3 cents.
However, Tether’s continued market dominance has not made it any more accepted in the cryptocurrency at large. Facing multiple lawsuits, the controversial stablecoin has been linked to the notorious Paradise Papers. The uncovered documents clearly prove Bitfinex and Tether are controlled by the same people, which was previously denied by both companies.