Journalist
Posted:
- Bitcoin’s price soared to $38,000 with many USDT holders showing bullish sentiment.
- Tether continued to showcase support for BTC, further strengthening the relationship between Bitcoin and USDT.
Bitcoin [BTC] has been seeing green for quite some time now. Many in the cryptocurrency market were suspicious of this trend. However, BTC continued to push past traders’ expectations.
New highs
Recently, Bitcoin hit $38.3K, a level not seen since May, 2022. Among the contributors to the BTC run up to $38k were some Tether wallets.
Santiment’s data showed that in the past six months, the top 100 biggest Tether addresses added $1.67 billion in USDT to their wallets.
The rising buying power of these large Tether addresses, also known as whales, suggests a bullish trend. If this continues, analysts expect that Bitcoin might hit $40k soon.
🐳💸 #Bitcoin reached $38.3K for the first time since May 5, 2022. Among many contributors, the top 100 largest #Tether addresses have added $1.67B in 6 months. If whale $USDT buying power continues increasing, $40K+ $BTC is likely to be around the corner. https://t.co/Ro5ZA3plvm pic.twitter.com/BXPWFMD0qP
— Santiment (@santimentfeed) November 24, 2023
If Bitcoin breaks $40K, it could attract more investors, potentially driving its value even higher in the future. The actions of these significant Tether holders often influence market trends, making their continued investment a noteworthy factor in Bitcoin’s trajectory.
Tether becomes bullish
Not only USDT holders, but Tether itself was a large advocate for BTC. Earlier this year, the company stated that it planned to buy hundreds of millions of dollars in bitcoin.
This move was part of its strategy to diversify its reserves that support the USDT token, aiming for a 1-to-1 peg with the U.S. dollar. Tether intends to invest 15% of its net profit, around $222 million, into bitcoin.
However, a Tether spokesperson clarified that the Bitcoin purchase is just a small part of its overall net profit. The major portion of their extra income goes towards running the business, covering expenses like bank fees.
Tether aims to ensure that the value of its bitcoin holdings remains below the total excess reserves, which stood at $2.48 billion at the end of Q1/2023, with bitcoin holdings at $1.5 billion.
Moreover, Tether is gearing up for a significant venture into Bitcoin mining, planning to invest around $500 million in the next six months. Paolo Ardoino, the upcoming head of Tether, shared this ambitious plan in a Bloomberg interview.
Is your portfolio green? Check out the BTC Profit Calculator
At press time, BTC was trading at $37,793.03 and had grown by 0.8% in the last 24 hours.
Source: Santiment
