- USD transactions rose by more than $5 billion as large portfolios piled up.
- Accumulation of large portfolios increased by almost 25%, with the top 10 portfolios holding a quarter of the supply.
The false report of a Bitcoin [BTC] ETF approval had a notable impact on the cryptocurrency community and raised concerns. Tether [USDT]It also experienced a significant effect, with recent data indicating a noticeable increase in a critical metric.
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USDT top portfolios increase accumulation
On October 16, the spread of false information about the approval of a Bitcoin spot ETF caused notable spikes in several key metrics related to Tether’s USDT, which had not been seen for several months.
According to data from SantimentThis news stimulated the accumulation of the largest portfolios.
Furthermore, it caused a surge in the stablecoin’s on-chain transaction volume, with transaction volume exceeding $5.6 billion. This was the highest transaction volume for USDT since August. At the time of writing, transaction volume remained above $5.5 billion.
Source: Santiment
Furthermore, the misinformation led to a significant increase in accumulation by the largest wallets involved in the stablecoin. According to Santiment’s metric, the top 10 wallets held more than 24% of the total supply at the time of writing.
This level has not been seen since March, as shown in the chart data. Furthermore, wallets holding USDT 1 billion or more collectively held more than USDT 5 billion during this period.
USDT flow shifts to negative
According to data from CryptoQuant, the events of October 16 initially led to a noticeable increase in the movement of USDT to cryptocurrency exchanges. However, since then the current has changed direction and become negative, as clearly illustrated in the flowchart.
On October 17, the chart showed an outflow of more than 73 million. Moreover, at the time this text was drafted, the outflow was still negative, with more than 20 million people withdrawn.
Source: CryptoQuant
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What the accumulation and negative current could mean
Interpreting this flow pattern alongside the accumulation metric, it appears to indicate a flight to safety in response to increased market volatility.
With the corresponding increase in Bitcoin’s price and subsequent small decline, traders appear to be accumulating more USDT to safeguard their assets and prepare for possible market turbulence.