- Bitcoin price rose to $38,000 with many USDT holders showing bullish sentiment.
- Tether continued to show its support for BTC, further strengthening the relationship between Bitcoin and USDT.
Bitcoin [BTC] I’ve been seeing green for a while now. Many in the cryptocurrency market were wary of this trend. However, BTC continued to outperform traders’ expectations.
New highs
Recently, Bitcoin hit $38.3k, a level not seen since May 2022. Some Tether wallets, among others, contributed to the BTC increase to $38,000.
Santiment data showed that the top 100 Tether addresses deposited $1.67 billion in USDT into their wallets over the past six months.
The increasing purchasing power of these large Tether addresses, also known as whales, indicates an upward trend. If this continues, analysts believe Bitcoin could soon reach $40,000.
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🐳💸 #Bitcoin reached $38.3K for the first time since May 5, 2022. Among many contributors, the 100 largest #Tether addresses added $1.67 billion in 6 months. If whales’ purchasing power in USDT continues to increase, $40,000 and above USDBTC may be just around the corner. https://t.co/Ro5ZA3plvm pic.twitter.com/BXPWFMD0qP
– Santiment (@santimentfeed) November 24, 2023
If Bitcoin breaks $40,000, it could attract more investors and potentially increase its value even further in the future. The actions of these significant Tether holders often influence market trends, making their continued investments a notable factor in Bitcoin’s development.
Tether turns bullish
Not only USDT holders but Tether itself has been a big proponent of BTC. Earlier this year, the company announced that it planned to purchase hundreds of millions of dollars worth of Bitcoin.
This move was part of its strategy to diversify its reserves backing the USDT token, aiming for a 1:1 peg to the US dollar. Tether plans to invest 15% of its net profits, around $222 million, in Bitcoin.
However, a Tether spokesperson clarified that Bitcoin purchases represent only a small portion of the total net profit. Most of their additional income goes towards running the business and covering expenses such as bank fees.
Tether wants to ensure that the value of its Bitcoin holdings remains below its total excess reserves, which stood at $2.48 billion at the end of the first quarter of 2023, with Bitcoin holdings at $1.5 billion.
Additionally, Tether is preparing for a significant venture into Bitcoin mining and plans to invest around $500 million over the next six months. Paolo Ardoino, the incoming 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 was up 0.8% in the last 24 hours.
Source: Santiment
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