Bitcoin's $91K Plunge Sparks $2.7B USDT Inflow Surge

Bitcoin's recent price drop to nearly $91,000, driven by geopolitical fears, triggered a significant surge in tether (USDT) inflows to centralized exchanges. According to analytics firm IntoTheBlock, exchanges registered a net inflow of $2.72 billion in USDT on the same day, marking the third-highest level ever recorded, with over $2.72 billion flowing in on Ethereum alone.

The substantial market downturn led to unusual capital flows, with traders depositing additional collateral to manage margin calls and prevent liquidations on underwater positions. Additionally, there was significant "buy-the-dip" activity, particularly focused on BTC, contributing to the surge in USDT inflows.

Since the price drop, Bitcoin has steadied between $95,000 and $100,000, according to CoinDesk data. Tether and its regulated rival, USDC, are widely used to fund crypto purchases, making them popular choices for traders looking to capitalize on market fluctuations.