FameEX Hot Topics | Glassnode: Bitcoin Forms Strong Negative Correlation with USDT Activity
2025-11-27 09:30:09A new Glassnode analysis has revealed a striking inverse relationship between Bitcoin’s price and the net movement of Tether (USDT), the world’s largest stablecoin. Since December 2023, periods when USDT flows out of exchanges have consistently matched sharp BTC rallies, while inflows of the stablecoin have coincided with price corrections or consolidation.
Glassnode explained that during euphoric market phases, investors typically withdraw $100–200 million worth of USDT per day to lock in profits. At Bitcoin’s recent all-time high near $126,000 in October, daily net outflows exceeded $220 million (30-day simple moving average), marking clear profit-taking pressure. Those outflows have now slowed and turned positive again, signaling the return of fresh stablecoin capital ready for deployment.
The pattern aligns with earlier observations from Whale Alert, which noted that Tether tends to mint large amounts of USDT during Bitcoin bull runs and burn tokens during downturns. With Bitcoin commanding a $1.8 trillion market cap and USDT at $184 billion, the two assets remain the undisputed leaders in the crypto space. Their opposing flows highlight USDT’s role as both a profit-taking vehicle and a source of dry powder for the next leg up.
Meanwhile, the regulatory landscape continues to evolve. The U.S. GENIUS Act, passed in July, created a federal framework for payment stablecoins, prompting Tether to pledge compliance and announce plans for a new GENIUS-compliant token, USAT. On the Bitcoin side, President Trump’s March executive order directed the establishment of a national digital asset reserve, though implementation has relied mainly on seized cryptocurrencies and remains in early stages. These developments underscore growing institutional and governmental engagement with the top two crypto assets.
Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.