Tether Net Flow

Definition ∞ Tether net flow measures the total amount of Tether (USDT) moving into or out of cryptocurrency exchanges. This metric indicates the aggregate movement of the stablecoin USDT, often signaling changes in market liquidity and investor intent. A positive net flow to exchanges suggests that funds are being deposited, potentially for purchasing other digital assets, indicating bullish sentiment. A negative net flow, where USDT leaves exchanges, may suggest profit taking or a move to stable holdings.
Context ∞ News reports frequently cite Tether net flow as a key indicator of short-term market sentiment and potential price action across the broader cryptocurrency market. Significant movements often precede or accompany major price shifts in Bitcoin and altcoins. Monitoring this flow provides insight into the immediate liquidity available for trading and investor confidence.