Crypto News – Because of whales on the platform, the Tether (USDT) reserve on Bitfinex has significantly increased.
Bitfinex Whales’ Clever Moves Increase Both Tether Reserves and BTC Price
A significant increase in the USDT reserve on Bitfinex has resulted from the whales’ decision to exit their leveraged holdings, as per CryptoQuant’s analysis. This calculated action has attracted notice and shown some fascinating features of consumer behavior.
Relative to the recent volatility of cryptocurrency values, major traders are opting to reduce or close their positions. Bitfinex‘s active interest, a key indicator of the total value of active derivative contracts on the exchange, has declined by 21%, according to CryptoQuant’s results, which clearly show this trend. The outcome has been a significant rise in the Tether reserve, which has increased from $5.3 million to an astounding $190 million.
Bitfinex Plays an Essential Role in Tether Issuance
Furthermore, there is clear evidence of a correlation between the price of Bitcoin and open interest in Bitfinex. This particularity places Bitfinex in a unique role within the digital asset, thereby providing valuable insights on potential future changes in the value of Bitcoin, even though its open interest has not reached the levels observed on major exchanges like Binance. As an additional crucial factor to take into account, the on-chain intelligence platform highlighted the strong relationship between Bitfinex and Tether.
Bitfinex plays a significant role in the issuance of this popular stablecoin, which makes the recent movement in Tether reserves even more intriguing. This dynamic offers a valuable perspective for assessing the relationship between leveraged positions and the price action of Bitcoin.CryptoQuant