Another 100M Tether (USDT) Withdrawn from Circulation

Published on 26 October 2018 by Cryptovest Staff

Tethers are leaving the crypto exchange ecosystem through Bitfinex, where USDT balances are constantly mopped up by the Tether treasury wallet.

Another 100 million Tether (USDT) were removed from Bitfinex and placed in the Tether treasury wallet, the removal of liquidity thus exceeding 1 billion coins. The balance of Bitfinex went as low as 3 million USDT but is rising once again as deposits are flowing in, taking the number back to around 7 million USDT.

In the past, large amounts of USDT injected into the exchange often led to an immediate price action for Bitcoin (BTC). Now, the withdrawal coincides with stagnant BTC prices as trading slowly moves to other pairs and markets.

https://twitter.com/WeissRatings/status/1055481660278480897

At the same time, the Bitfinex BTC cold wallet has seen some inflows, though the balance is still relatively low at 133,317 BTC.

The persistent disbalance through Bitfinex and Tether remains worrying for the crypto space. The USDT price has hovered below "$1" for about a month now and is on track to break the record from last spring, when the asset stayed below "$1" for six weeks.

The supply of USDT available is now below 2 billion tokens, the lowest level in the past 10 months. It is possible that more coins will be revoked as USDT accumulates on Bitfinex. As of 7:00 UTC on Friday, the Bitfinex wallet had grown from around 7 million USDT up to 9 million, suggesting the possibility of even more coins being moved to the treasury.

USDT is still held on other exchanges, with nearly 700 million contained in the wallets of Binance.