Stablecoin Outflows from Kraken Trigger Market Concerns: Over $500 Million Withdrawn in USDT

Traders and investors are on high alert after reports of significant stablecoin outflows from Kraken, a major cryptocurrency exchange. With over $500 million in USDT withdrawn, fears of a potential market downturn are growing. While the exact reason for the outflows is unclear, the situation is reminiscent of a past episode where USDC was depegged in large clips. As more information emerges, many are closely monitoring the situation and urging caution.

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.

Alert previously flagged historic FTX stables withdrawals on Nov 5 source

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.

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