Bitcoin Stabilizes After Sharp Drop as USDT Inflows Hit $2.72B

Bitcoin (BTC) recently plunged to nearly $91,000 amid heightened trade war concerns, triggering significant market reactions. On the same day, centralized exchanges recorded a net inflow of $2.72 billion in tether (USDT), the largest stablecoin by market value, according to blockchain analytics firm IntoTheBlock.

“The sharp downturn led to unusual capital movements, with USDT netflows into exchanges hitting the third-highest level ever, surpassing $2.72 billion on Ethereum alone,” IntoTheBlock reported in its weekly newsletter.

This surge likely stemmed from two key factors: traders depositing additional collateral to manage margin calls and prevent liquidations, and aggressive "buy-the-dip" activity focused on BTC accumulation. Historically, large USDT inflows signal heightened market participation, often preceding increased volatility or price rebounds.

Since the crash, Bitcoin has stabilized between $95,000 and $100,000, according to CoinDesk data. Tether and its regulated competitor, USDC, continue to play a crucial role in crypto trading, providing liquidity and facilitating purchases during market turbulence.

Market analysts suggest that stablecoin inflows often indicate growing investor confidence, with traders positioning for potential price recoveries. The recent USDT surge underscores the critical role of stablecoins in crypto markets, particularly during periods of heightened uncertainty.

As Bitcoin holds steady, traders remain watchful for further price movements and macroeconomic developments that could influence the market’s next direction.