- Santiment captured four USDT transfers of $1B in the last ten days.
- Data suggests that whales moved out their USDT due to USDC instability.
- Bitcoin broke $26,500 within four days after falling to $19k last week.
In a recent update, market intelligence platform Santiment reported that there had been a surge in large transfers of stablecoin Tether (USDT) over the past year, with eight of such transactions valued at over $1 billion.
According to the report, four of the large transfers have occurred in the last ten days alone, compelling a significant shift in the crypto market. Santiment noted that the enormous transfers of USDT were likely due to concerns over the stability of USDC, another stablecoin that recently reported over $3 billion in exposure to a bankrupt US bank.
As a result, whales, large crypto holders, have been moving their USDT out of exchanges at an increased rate, the report claimed.
On the other hand, some crypto enthusiasts argued that the massive transfers by crypto whales indicate that they were only exchanging their stablecoin positions for Bitcoin (BTC). According to data from the market tracking platform, CoinMarketCap, BTC fell below $19k last Friday. However, the coin rebounded within four days to a nine-month high of $26,500 amid the crisis in the US banking sector and numerous bank runs.
Additionally, Santiment said the rise in BTC price could be attributed to multiple factors, such as an increase in spot-driven buying, network growth, and a decline in the value of USD. The data firm also expressed that the widespread fears in the banking sectors following the collapse of three prominent US banks are a dream scenario for crypto maxis as it would make crypto more appealing.