"$1 Billion USDT Issued on Ethereum…Binance OI Declines, Possible Whale Accumulation"

While $1 billion worth of Tether (USDT) was issued on the Ethereum (ETH) network in a single day, Binance's open interest (OI) was observed to have decreased. The market is raising the possibility of accumulation by whales and institutions.

On the 20th, CryptoQuant analyst Amr Taha said in a QuickTake report, "Ethereum's price has recently held around $4,500, but Binance's open interest (OI) has continued to decline as of the 7th, showing investors are liquidating long positions." This indicates that short sellers are gaining strength in the derivatives market.

On-chain, large buying capacity was detected. On the 19th, $1 billion worth of Tether (USDT) was newly issued on the Ethereum network, and about $925 million worth of ETH flowed net out of Coinbase and Binance over two days. Large withdrawals typically reduce selling pressure and act as a price-supporting factor.

The analyst said, "The decline in OI and the shift of net buying to negative show investors' anxiety," but added, "USDT issuance and large exchange withdrawals suggest institutions and whales are accumulating at the lows." He added, "This is a phase where retail investor departures and large capital inflows intersect."

Meanwhile, open interest refers to the number of contracts for positions in the derivatives market that traders have not liquidated. Generally, as open interest increases, the likelihood of greater price volatility for the coin rises.