Tether flows to exchanges decline – Why are traders hesitant to deploy capital?
The post Tether flows to exchanges decline – Why are traders hesitant to deploy capital? appeared on BitcoinEthereumNews.com.
Stablecoin metrics underlined the lack of potential for a price recovery in the market Altcoin market cap chart highlighted the likelihood of more pain ahead The sentiment across the crypto market is one of dejection right now. The market has been rocked by the LIBRA scandal, coming days after President Trump’s tariff wars. In fact, the altcoin market may be at an inflection point, and the direction it has chosen to move in may be worrying too. Source: Alternative.me The sentiment across the crypto market has swung dramatically over the past month. It had been above 60 throughout January, going as high as 84. However, the losses across the market, and especially for altcoins, have hit sentiment hard. While technically neutral, online engagement has remained predominantly bearish too. Tether metrics emphasize steady selling and lack of bullish hope in the short term Source: CryptoQuant Exchange withdrawing addresses for Tether have fallen over the past few days. This metric tracks the number of addresses making outflow transactions from exchanges. While it usually indicates accumulation, for a stablecoin such as Tether, it may be a bearish sign. It hinted at profit-taking and investors moving their profits elsewhere. This could be to DeFi applications, optimistically, but it could also be to hot wallets to wait for a dip. Such a metric tends to run higher during bullish trends while falling during bearish ones. Source: CryptoQuant Exchange netflow for USDT has also been negative on average over the past few days. The 7-day SMA revealed the metric was in negative territory for the third time since mid-December. Before December, it had been negative back in October. Positive netflows indicate inflows of the stablecoin to exchanges. This is opposite to the withdrawing addresses seen recently and implies more buying power in the market. The November…
Filed under: News - @ February 19, 2025 7:21 am