1) Alright, time for some answers!
My brief explanation is roughly:
There's huge buy-side demand for USDT. It's coming from:
a) OTC flow, primarily from Asia
b) People selling BTC --> USDT to hedge positions
c) People selling BTC --> USDT to reduce risk
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But the flow will always have to be from BTC to USD to USDT and if they are keeping the money parked in USDT and not withdrawing USDs, they definitely want to get back in any sign of healthy recovery in BTC, so not completely bearish!!
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Yeah it's interesting! Another thing worth noting--margin USDT trading as driven some of this, and requires keeping it as USDT.
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Exactly! Sale of BTC to USDT doesnt increase USDT market cap. It had to be sold to USD first. Why suddenly someone decided to buy 2B USDT with their dollars then?
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If A sells BTC --> USDT, then they're selling the BTC / buying the USDT _from_ B. So B has to have USDT to sell to A--and eventually they might have to create USDT to have any to sell (for BTC).