A large transfer of USDT was made to Binance earlier today. The deposit occurred shortly before Bitcoin began its rise.
Binance saw a large deposit which coincided with an upward move for Bitcoin. The timing may just be a coincidence, however.
Binance Sees 50.5M USDT Deposit
Whale Alert (@whale_alert) picked up on a large deposit earlier today made to Binance. 50,559,204 USDT was transferred to Binance in total.
Interestingly, Bitcoin began to see a significant rise around the time the announcement was made. About an hour after the transfer occurred, Bitcoin saw volume and price spikes that fizzled out as quickly as they shot up. However, this began a concerted uptrend thereafter which saw steady gains for the remainder of the day. Currently, Bitcoin is trading well above the $8,000 price point and is around $8,150 at the time of writing.
It’s unclear whether this is mere coincidence or if the USDT sent was really to ‘buy the dip.’ The USDT was deposited to Binance’s hot wallet, however, which means it was likely for a trade.
Tether Treasury Keeps Minting
Tether Treasury has been issuing USDT like never before. In the past month, it has issued over $1 billion of new USDT. The unprecedented issuance rate has naturally raised some questions. For example, who is requesting that all this USDT be issued and is it actually backed by USD?
Exchanges have been partly responsible for the surge in demand. The amount of USDT they hold is now at an all-time high. However, the most recent USDT deposit to Binance was not intended for its cold wallet.
Replies to the USDT deposit to Binance were largely negative. Virtually every tweet mentioning USDT now is inundated with calls for a proper investigation into Tether Treasury. However, these criticisms have been levied against Tether Treasury for some time now. We will have to see if such concerns are taken seriously in the near future or whether they will be lost in the noise yet again.