{"id":57977,"date":"2025-11-27T12:30:33","date_gmt":"2025-11-27T09:30:33","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=57977"},"modified":"2025-11-27T09:56:19","modified_gmt":"2025-11-27T06:56:19","slug":"bitcoin-usdt-correlation-analysis","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/bitcoin-usdt-correlation-analysis\/","title":{"rendered":"How Does the Correlation Between Bitcoin and USDt Work?"},"content":{"rendered":"

Blockchain analytics firm Glassnode has identified a strong negative correlation between Bitcoin<\/strong> and USDt<\/strong> over the past two years. According to the analysis, when USDt exits exchanges, BTC prices tend to rise. This pattern becomes more noticeable during periods when investors take profits.<\/p>\n

Glassnode\u2019s data compares net USDt<\/a> outflows with Bitcoin price increases starting from December 2023. For example, in October 2025, BTC reached $126,000 while net USDt outflows exceeded $220 million. This movement signals short-term profit-taking among traders.<\/p>\n

Data from Whale Alert also supports this trend. During Bitcoin bull runs<\/strong>, USDt is typically minted, while it is burned during corrections. These two assets rank first and third by market capitalization, around $1.8 trillion and $184 billion respectively.<\/p>\n

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Revisiting this cycle\u2019s USDT netflow to exchanges, we find a strong negative correlation with BTC\u2019s mid-term performance.
During euphoric phases, USDT typically flows out at \u2013$100M to \u2013$200M\/day as investors lock in profits.
At the $126K peak, net outflows reached >$220M\u2026 pic.twitter.com\/AOsHf8dQ2p<\/a><\/p>\n

— glassnode (@glassnode) November 26, 2025<\/a><\/p><\/blockquote>\n