Blockchain analytics provider Glassnode found a strong negative correlation between Bitcoin and USDt activity in the last two years. Net outflows of USDT from exchanges coincided with increases in BTC price, signaling profit-taking during euphoric phases and easing as flows turn positive again.

An analysis by Whale Alert in April revealed a correlation between Bitcoin and USDt, with the stablecoin issuer typically minting during bull runs and burning during corrections. Both remain the first and third largest tokens by market capitalization at about $1.8 trillion and $184 billion, respectively.

The US government passed the GENIUS Act in July, establishing a regulatory framework for payment stablecoins. Tether CEO Paolo Ardoino confirmed compliance with the law and announced the launch of a new GENIUS-compliant dollar-pegged stablecoin, USAT. Efforts are also being made to stockpile Bitcoin as part of a strategic reserve, although the plan is yet to be fully enacted.

Read more at cointelegraph.com: ‘Strong Negative Correlation’ with BTC and USDt Activity: Glassnode