According to new Glassnode data, Bitcoin is strongly negatively correlated with the flows of USDT.
The analytics company examined two years of data as of December 2023 and discovered that the profits of the Bitcoin prices typically coincide with the net discharges of the USDT of exchanges. The report shows that bullish times are used to gain profit by investors through withdrawals of stablecoins.
USDT outflows increase with Bitcoin bull markets
Glassnode announced that the net USDT outflows grew among the largest exchanges during significant Bitcoin rallies. The company was recording $100-$200 million every day when the market was performing well. It has been an upward trend that reached its peak in October with Bitcoin recording another all-time high above $126,000. In October 2017, Net USDT outflows increased to $220 million with traders sealing profits.
Glassnode also added that the results of April 2025 of Whale Alert confirm this trend. In bullish markets, Tether traditionally mints new USDT and burns tokens when corrections are found in the market. The article supports the importance of stablecoins as a fundamental liquidity source.
New regulation causes stablecoin trends to shift
There has been a wider review of the regulatory and market developments within the report. In July 2025, stablecoins were regulated more favorably in the United States with the passage of the GENIUS Act. Tether CEO Paolo Ardoino affirmed that USAT was introduced by the company to meet the new requirements and fulfill the institutional demand.
The study went ahead to add that there was an executive order of President Donald Trump of March, which instructed the establishment of a digital asset reserve. The reserve will store the confiscated cryptocurrencies but this is yet to be implemented.
Glassnode observed that USDT and Bitcoin still stand at the top of the market. USDT is worth approximately $1.8 trillion, whereas Bitcoin is worth approximately $184 billion.
Markets impact the institutional flows
Glassnode noted that there was a change in the behavior of investors during November. SPOT Bitcoin ETFs recorded net outflows of $3.55 billion with institutions changing their positions. The company observed that the institutional activity has become more prominent in liquidity patterns that used to be influenced by retail traders.
The study stated that monitoring the movements of Bitcoin and the USDT can assist investors in determining how liquidity movements are manifested. The movements display market sentiment and give an overview of the trends of volatility in the digital asset industry.
Bitcoin recovers with the market confidence
Bitcoin regained more than $90,000 following a decline to the level earlier in the week. Before being published, the asset traded at about $90,970, which is equivalent to a 3.89% increase in a single day. The Fear and Greed Index was upgraded to 15 to 18, and this is an indication that it increased by a small margin.
According to Glassnode, the incorporation of stablecoins in institutional portfolios still shapes the price response of Bitcoin. The company indicated that the supply of USDT is concentrated on Ethereum, and 47.6% and Tron, with 41%.
This research concluded that the activity of the stablecoins is still critical in tracking the actions of the market and in the interpretation of the liquidity statuses, determining the changes in the prices.
