Tether's Significant Bitcoin Acquisition Positions It As Seventh-Largest Holder Worldwide
Summary:
Tether, the issuer of USDT, recently acquired 8,888 Bitcoin (BTC), increasing its wallet balance to 75,354 BTC, worth $5.2 billion in the current market. This move makes Tether the seventh-largest Bitcoin holder worldwide. The acquisition happens at a time of heightened institutional interest in Bitcoin, driven by the approval of US spot Bitcoin exchange-traded funds (ETFs) and the imminent Bitcoin halving. Despite significant market volatility, Bitcoin continues to trade above $69,000, hinting at the end of the pre-halving correction.
USDT's issuer, Tether, recently purchased a substantial amount of Bitcoin (BTC) — precisely 8,888 BTC — amounting to $618 million on March 31. Consequently, Tether's wallet balance has surged to 75,354 BTC, purchased at an average of $30,305, currently estimated to be worth $5.2 billion as per on-chain data. Tether's wallet has seen an impressive gain of over 128%, possessing an unrealized profit of about $2.94 billion, as shown by CoinStats.
This significant acquisition coincides with a period of intensified institutional interest in Bitcoin. This interest is attributed to the ratification of the US spot Bitcoin exchange-traded funds (ETFs) and the imminent Bitcoin halving which will see the block supply issuance halved in just 19 days.
Post-acquisition, Tether is now ranked as the seventh largest Bitcoin holder across the globe per Bitinfocharts data. Binance’s cold wallet holds the distinction as the top Bitcoin holder, backed by over 248,597 Bitcoin, which equates to $17.31 billion.
Tether has announced its decision to allocate 15% of its net profit towards Bitcoin investments, thus diversifying the assets backing the stablecoin. Tether’s USDT reached a milestone $100 billion market cap on March 4, reflecting a 9% growth since the year's start.
Bitcoin’s current trading price surpasses $69,000, suggesting a possible conclusion to the pre-halving correction. Over the 24 hours leading up to 8:45 am UTC, Bitcoin's price experienced a decrease by 1.23%, trading at $69,523. Regardless of the market witnessing the largest quarterly options expiry event on March 29, Bitcoin has traded above the $69,000 line since March 25.
Rekt Capital, an anonymous crypto analyst, stated that Bitcoin has surpassed this former all-time high, potentially indicating the termination of this pre-halving retracement. This marks a first for Bitcoin – reaching a new all-time high before a halving event, in its history. Even with its robust price dynamics, the halving's full extent has not been priced in yet, says Basile Maire, D8X decentralized exchange’s co-founder and former UBS executive. Furthermore, Bitcoin has made a historic achievement by closing seven monthly green candles consecutively for the first time ever.
Published At
4/1/2024 12:18:15 PM
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