Traders have taken note of a $25 million outflow of stablecoins from exchanges, sparking concerns about a possible market downturn. This is reminiscent of a previous episode where USDC was depegged in $126 million clips.
Reports on Twitter have indicated significant withdrawals from exchanges, with users sharing data and urging caution. The outflow of stablecoins from exchanges is often an indication of impending market trouble, as was observed during the FTX collapse.
Further investigations revealed that the outflows were from Kraken, a major cryptocurrency exchange. The amount of stablecoin withdrawals is estimated to be over $500 million in USDT.
While the exact reason for the withdrawals is unclear, some speculate that it may be related to recent news about Binance. Others suggest that Coinbase and Kraken are frequently used as a gateway for stablecoins and that this may be a normal occurrence.