USDT Level on Exchanges Reaches All-Time High for the Year
The amount of USDT held by exchanges has reached its highest level of the year, surpassing $568 million according to data from The Block. This indicates that exchanges’ holdings of Tether’s stablecoin are steadily increasing. Generally, exchanges’ USDT balances grow when more users hold the asset on the exchange or when there is a higher demand to sell the asset compared to buying. As the largest stablecoin in terms of market cap, USDT is a popular choice for traders seeking stability in the volatile crypto market.
The recent fluctuations in the market may have prompted many traders to hold their USDT in their accounts rather than withdrawing it. This could be a temporary measure as they evaluate market conditions and decide whether to buy again. Bitcoin experienced a rebound to $65,000 before dropping below $60,000, indicating a breather from the recent lows.
While the amounts of BTC and ETH held on exchanges have also seen some fluctuations, the increase in USDT balances aligns with the overall sentiment of a slowdown in the crypto market’s strong upward momentum. As the market adjusts and traders reassess their strategies, the higher levels of USDT on exchanges suggest a cautious approach as users navigate the volatility.