USDT Derivative Exchange Inflows May Be Influencing Bitcoin Price
As pointed out by an analyst in a CryptoQuant , many stablecoins entering into derivative exchanges have recently preceded a rise in the BTC price. The relevant indicator here is the “Tether derivative exchange inflow means,” which measures the mean amount of USDT currently being transferred into the wallets of all derivative exchanges.
This metric is different from the normal exchange inflow, since that one measures the total amount of the stablecoin flowing into exchanges rather than the average amount flowing into these platforms per transaction.
The possible relationship between the price of Bitcoin and USDT derivative exchange inflow mean | Source:As you can see in the above graph, the quant has marked the various points of interest in the USDT derivative exchange inflow mean and also how the Bitcoin price reacted to these instances. It seems like whenever this metric has spiked to relatively high levels recently, the cryptocurrency’s price has first observed a small downtrend and followed up with some rise.
However, as the inflow mean indicator used here is strictly for derivative exchanges, the likely purpose behind these deposits wasn’t to purchase other assets with them (as spot exchanges are usually used for this reason).
The quant thinks that these recent Tether exchange inflows were possibly being made to open long positions for Bitcoin, hence the bullish effect on the asset. “Since this is not a rule, it cannot be accepted as 100% accurate, and we may not always see the price movement I mentioned,” the analyst cautions. “I have presented you with a statistic to be careful about when opening your trades.”BTC Price
At the time of writing, Bitcoin is trading around $28,000, up 14% in the last week.Looks like the value of the asset has declined in the last few hours | Source: