$1.29B in USDT Exit Exchanges Ahead of Possible Crypto Rally

Highlights:

• $1.29B worth of USDT has left crypto exchanges.
• Santiment explained that the outflow could precede a major crypto rally. 
• The crypto market has shown subtle recovery signs, which corroborate Santiment’s claims.  

On-chain analytical intelligence platform Santiment reported that Tether’s USDT on Ethereum (ETH) just saw its biggest exchange outflow in about three months. In a recent X post, the analytical firm stated that roughly $1.29 billion in stablecoins left crypto exchanges on May 8, 2026. Santiment added that the recent outflow has attracted significant attention because stablecoins are often used to predict market movements. When large volumes of USDT leave crypto exchanges, it usually means traders are moving their funds away from trading platforms. This means that the fund will not be available for quick crypto purchases. 

💸 Tether (on Ethereum) has just recorded its largest exchange outflow in roughly three months, with -1.29B net $USDT moving off exchanges on Friday. What is the significance?

When stablecoins flow off exchanges, it means holders are withdrawing their buying power from trading… pic.twitter.com/yjhI6BeKlF

— Santiment ✈️ 🇨🇿 ETHPrague (@SantimentData) May 9, 2026

Santiment explained that this trend might appear negative because it has significantly reduced the amount of instant buying power on exchanges. However, deeper analysis shows that large withdrawals do not always mean that money is leaving the crypto market entirely. According to Santiment, historical trends have shown that many big investors move their funds to private wallets, Decentralized Finance (DeFi) platforms, or over-the-counter (OTC) trading desks in preparation for future cryptocurrency investments.

Santiment Hints at what Could Happen Next as $1.29B in USDT Exit from Exchanges

A similar pattern played out on February 9, with over $3 billion in USDT leaving trading platforms. After the outflow, Bitcoin’s (BTC) price declined over the next two weeks, before experiencing a remarkable rebound later in the month. The next key signal will be whether the tokens return to exchanges in the coming days. Santiment explained that if stablecoins start flowing back into crypto exchanges, it could suggest traders are looking to buy cryptocurrencies again. If not, traders will continue to tread cautiously until market signs become clear again. 

Santiment stated:

“Whether this current capital re-enters exchanges as buying pressure in the near term is the key variable to monitor. If USDT begins flowing back onto exchanges in the coming days, it would signal that deployment into crypto assets is imminent.” 

Crypto Market Recovers Slightly, Driven by Several Factors

At the time of press, the crypto market has gained 1.3% in the past 24 hours with a market cap of about $2.765 trillion and a trading volume of approximately $94.803 billion. In the past week, the total crypto market attracted over $150 billion. Within the same period, the S&P 500 crossed 7,400 for the first time. A year ago, it sat around 5,600. In addition, the Nasdaq Composite moved from 25,000 to 26,000 in less than a week. This remains the fastest 1,000-point milestone achieved in recent times.

Happy Saturday all! If you missed the past 24 hours in crypto and stocks, here's your full recap:

🚨 Major Headlines & Market Moves 🚨

– The S&P 500 crossed above 7,400 for the first time. A year ago it stood at 5,600.

– Nasdaq Composite moved from 25,000 to 26,000 in less… pic.twitter.com/0fqTyz87D1

— Timothy 🟢 | Panic Drop (@timoassi) May 9, 2026

When major stock indexes like the S&P 500 and the Nasdaq Composite reach new heights, it suggests that investors are gradually becoming more confident in taking risks. When this happens, it often favors major cryptocurrencies like Bitcoin and Ethereum.

For example, Bitcoin is trading at approximately $80,234 after a subtle 1% increase over the past 24 hours. The asset has a market cap of approximately $1.6 trillion and a trading volume of roughly $30.94 billion. On its part, Ethereum has gained 2.1% within the same period and is trading at roughly $2,316. Ethereum’s market cap is $279.43 billion, while its trading volume is $17.2 billion.