Recent data highlights a strong inverse correlation between Bitcoin's price movements and USDT flows to exchanges. Analysis from Glassnode indicates that when USDT exits exchanges, Bitcoin prices often rise, a trend that has intensified since December 2023. This pattern suggests that USDT outflows may signal increased buying pressure for Bitcoin, while inflows could indicate profit-taking or market stabilization.
Over the past two years, this correlation has been consistent, with USDT outflows surpassing $220 million during significant Bitcoin price peaks. While traders are encouraged to monitor USDT flows as part of their analysis, it is important to note that this relationship is not a perfect predictor and should be used in conjunction with other market indicators.
Bitcoin Price Inversely Correlates with USDT Exchange Flows
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
