Technology Whales Pull $4 Billion In Tether From Exchanges In 10 Days: Is...

Whales Pull $4 Billion In Tether From Exchanges In 10 Days: Is It The Start Of The General Crash?

The crypto industry does not win for scares. With each new event, there are those who suspect the arrival of the general collapse. Also with what happened in the last 10 days with the stablecoin Tether (USDT). According to the expert platform in metrics Santiment, the whales have taken from the exchanges more than 3,742 million euros (4,000 million dollars at current exchange rates) of this stablecoin.

According to the mentioned tool, there have been 8 Tether transfers valued at $1 billion or more in the last year. 4 of them, they underline, have occurred in the past 10 days. Namely, the whales have moved USDT off exchanges at a rapid pace following the collapse of Silicon Valley Bank (SVB).

You have to remember that Circle, the company behind this stablecoinhad 3,077 million euros (3,330 million dollars at current exchange rates) in cash reserves in the bank that has just collapsed.

Is a general cryptocurrency crash coming?

Cryptocurrency expert Ekta Mourya interprets this Tether selloff in FXStreet and he doesn’t hesitate to use big words like “catastrophic collapse.”

Stablecoins, he stresses, generally represent liquidity on the demand side, therefore, the removal of USDT from exchanges is considered a sell signal.

Also remember, Mourya, that Tether, the largest stablecoin by market capitalization, minted 1 billion USDT tokens on the Ethereum and Tron blockchains last Wednesday. The stablecoin’s market capitalization jumped from $72.1bn to $74.6bn between March 12 and 14, causing jitters among investors.

Currently, according to CoinMarketCap, the market capitalization of this stablecoin stands at 73,712 million dollars.

The expert also maintains that the smallest reserves of stablecoins on exchanges they imply less buying pressure on assets such as bitcoin, which negatively influences its price.

Bitcoin Price Rises After Silicon Valley Bank Collapse

We will have to wait to find out if Mourya’s prediction about the bitcoin price response to the big sale of the stablecoin Tether. For now, the largest cryptocurrency has done well with the chaos, since it has risen 21.92% in recent days: from the $20,367 with which it opened on March 10, to the current $24,832.46.

The main reason could be the fact that bitcoin is not subject to traditional banking systems, and, therefore, it has been shown as a kind of active shelter to the umbrella of decentralized finance.

And it has not only affected the price of bitcoin. The second cryptocurrency by market capitalizationethereum, has increased by 17.68% since last day 10. In this case, it has gone from 1,438.76 to 1,693.12 dollars.

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