Tether inflows spiked to $2.7 billion during Bitcoin’s recent drop to $90,000, according to analytics.

Tether Inflows Surge to $2.7B as Bitcoin Dips to $90K Amid Trade War Fears

Last week, Bitcoin (BTC) experienced a significant price drop, falling to around $91,000, as fears surrounding a potential trade war shook the market. On the same day, centralized exchanges saw a massive $2.72 billion net inflow of Tether (USDT), the largest stablecoin by market cap, according to blockchain analytics firm IntoTheBlock.

IntoTheBlock’s weekly report highlighted that the surge in Tether inflows was driven by a combination of traders depositing additional funds to manage margin calls and prevent forced liquidations on leveraged positions. There was also a notable uptick in “buy-the-dip” sentiment, with many traders targeting BTC at its lowered price.

Since the market dip, Bitcoin has stabilized within the $95,000 to $100,000 range, according to CoinDesk data. Both Tether (USDT) and its competitor, USDC, are commonly used by traders to facilitate crypto transactions during times of market volatility.