Binance had a whale transfer of USDT be made to it earlier this day. This deposit occurred just as people started to buy Bitcoins due to a rise in the market again. While the timing is of an extreme suspect, being just as the upward movements of Bitcoin began, it may all just be a coincidence.
Massive Capital At Impeccable Timing
The deposit was picked up by Whale Alert, a twitter account notifying the public at large for any sort of whale transactions. The single transfer moved a staggering 50,559,204 USDT into the Binance exchange.
— Whale Alert (@whale_alert) April 29, 2020
While the transfer itself is noteworthy, it becomes doubly so when you look at Bitcoin’s price movement. Bitcoin has started its significant rise in price at around the time the announcement was made.
To be precise, the transaction occurred an hour before Bitcoin saw a spike in price and volume, one that died down just as quickly as it went up. However, it marked the start of a definite uptrend after that, which saw steady gains throughout the day. As it stands now, Bitcoin is trading well and above the $9,000 price point, standing at $9,170 at the time of writing.
Printing Out Money Nonstop
Right now, it’s unclear whether this was a coincidence transaction, or if the whale that moved the USDT was planning to “buy the dip.” This becomes especially interesting when one considers that the USDT was transferred to the hot wallet of Binance, meaning it will likely be traded with.
In related news, the Tether Treasury has been printing USDT out like never before. Within the past month alone, the company has managed to issue out $1 billion in new USDT. The issuance race is unprecedented and naturally caused many questions to be raised. While many ask who requested all this USDT to be issued, the real problem in everyone’s mind is whether or not all of this USDT is backed by USD.
Bad Reception For New Transfer
The exchanges themselves could be partly responsible for the massive surge in demand. The amount of USDT that exchanges hold collectively stands at an all-time high, now. However, the most recent deposit of USDT into Binance was not put in the cold wallet, raising questions as to why it put there, to begin with.
Overall, the response to this new USDT deposit in Binance was negative. A majority of tweets mentioning USDT at this point are now full of calls for proper investigations within the Tether Treasury. However, this isn’t new; it’s just a shift in how vocal the outrage is. For some time now, the Tether Treasury has been put under scrutiny. It’s unclear if anything will come of it, or if it will be just the same as the times before.