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.
The share of USDT in BTC trading has been sliding, going down to around 44% from peaks of nearly 60% in the past weeks. As a share of the entire crypto market, USDT still commands about 18% of all trades, down from 21% in recent days. The USDT premium of BTC prices on Bitfinex is still around $142, with the lower USDT value distorting the nominal price on the exchange. Tether continues to trade at $0.97 on Kraken, where volumes are currently slim.
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.