If the Fed signals a rate cut, as CME data strongly suggests, crypto traders may quickly deploy their stablecoin reserves to drive a market rally.
Tether (USDT) balances on crypto exchanges hit a record high of 20.339 billion on Aug. 13, signaling investors are gearing up to deploy these stablecoins into crypto assets ahead of the United States Federal Reserve’s September rate decision.
Tether’s record balance across crypto exchanges followed the minting of $1 billion worth of stablecoin by its namesake treasury. On Aug. 13, data tracking platform Whale Alert noted that Tether had added another $1 billion on the Ethereum network.
Paolo Ardoino, the CEO of Tether, clarified that the recent $1 billion USDT transaction was an "inventory replenish," emphasizing that it was "authorized but not issued." Simply put, the tokens are reserved for future issuance requests and chain swaps.
