$50.5 million in USDT deposited into Binance before Bitcoin rally

Binance received a huge USDT transfer today. At the same time, people started buying Bitcoin as the market was rising again. Although the timing is very suspicious, it coincides with the rise of Bitcoin, but it may just be a coincidence.

Huge capital and perfect timing

The transfer was spotted by Whale Alert, a Twitter account that notifies the public of large transactions. This single transfer transferred a staggering 50,559,204 USDT to the Binance exchange.

While the transfer is notable in itself, it becomes even more remarkable when you look at the price action of Bitcoin, which began to see a significant price increase around the time of the announcement.

To be precise, the transaction took place an hour before a spike in Bitcoin price and volume, which quickly subsided. However, it marked a clear upward trend since then, with steady growth throughout the day. Currently, Bitcoin is trading well above $9,000, at $9,170 at the time of writing.

Printing money continuously

It is unclear if this was a coincidental transaction or if the whale that moved the USDT planned to “buy the low.” This is particularly interesting when considering that the USDT was transferred to Binance’s hot wallet, which means it was likely traded.

In related news, the Tether treasury has been printing USDT at an unprecedented scale. In the past month alone, the company has successfully issued $1 billion in new USDT. This issuance race is unprecedented and naturally raises many questions. While many people are asking who is requesting the issuance of all these USDT, the real question on everyone’s mind is whether these USDT are all backed by US dollars.

New transfers get cold reception

The exchanges themselves may be partly responsible for the surge in demand. The total amount of USDT held on exchanges is currently at an all-time high. However, recent deposits of USDT to Binance were not placed into cold wallets, raising questions as to why this was done.

Overall, the response to this new USDT deposit to Binance has been negative. At this point, most tweets mentioning USDT are calling for a proper investigation into the Tether Treasury. However, this is not new, just a shift in the way the anger is being expressed. The Tether Treasury has been under scrutiny for some time. It is unclear if anything will come of this, or if it will remain the same as before.

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