Tether Supply On Exchanges Is Now Highest In 7 Months
According to data from the on-chain analytics firm , $9.99 billion worth of USDT is now on exchanges. The indicator of relevance here is the “supply on exchanges,” which keeps track of the total amount of a cryptocurrency being stored in all centralized exchanges’ wallets.
The interpretation of this metric can differ depending on the type of asset that’s being discussed. In the case of Bitcoin, for example, the exchange reserve may be considered a measure of the potential selling pressure, as one of the reasons investors may deposit the coin is for selling-related purposes.In the context of the current discussion, BTC’s supply on exchanges isn’t the one of interest, but rather the metric for Tether is. USDT is a popular stablecoin (the largest one based on market cap) that always has its value pegged to the US Dollar.
Here is a chart that shows the trend in the supply of exchanges for Tether over the past few years:Looks like the value of the metric has been going up in recent days | Source:Usually, an investor may want to hold their capital as a stablecoin like USDT to keep it away from the volatility associated with other assets in the cryptocurrency sector. However, many such stablecoin holders use these assets as a temporary safe haven, as they eventually wish to return to the volatile market.
It should be kept in mind that the rise in the Tether supply on exchanges only implies an increase in the available dry powder. Whether Bitcoin would benefit from a boost depends on whether this dry powder is used to buy the asset or not.
BTC Price
Bitcoin has declined in the past couple of days as the asset now trades around the $27,600 level.BTC has recovered a bit from its lows from yesterday | Source: