BTC price shows strong inverse correlation with USDT exchange flows

The price of BTC has shown a strong inverse correlation with the net flow of Tether (USDT) to exchanges over the past two years, Cointelegraph reported, citing data from Glassnode. According to Glassnode, a clear trend has emerged since December 2023 where BTC's price rises during periods of USDT net outflows from exchanges. The analytics firm noted that when investors are taking profits, daily net outflows of USDT typically range between $100 million and $200 million. For instance, last October, when BTC's price reached $126,000, the 30-day simple moving average of USDT net outflows exceeded $220 million. More recently, however, this trend has shifted to a net inflow of USDT, suggesting that profit-taking pressure is easing.