Tether Buys More Than $600 Million in Bitcoin
01 Apr, 2024 ● Crypto News
On March 31, Tether, the entity responsible for the Tether stablecoin, made a significant purchase of 8,888 Bitcoin, valued at $618 million.
As a result of this purchase, Tether's Bitcoin holdings in its wallet have reached 75,354, acquired at an average cost of $30,305 each.
The total value of these holdings stands at approximately $5.2 billion, based on current on-chain metrics.
This wallet's value has increased by over 128%, showcasing an unrealized gain of $2.94 billion, as reported by CoinStats.
This strategic move by Tether aligns with a period of increased institutional interest in Bitcoin.
This interest has been spurred by the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States and the anticipation of the Bitcoin halving event, which will cut the block reward issuance by half in just 19 days.
Following this significant acquisition, Tether has ascended to become the world’s seventh-largest Bitcoin holder, per Bitinfocharts.
The top position is held by Binance’s cold wallet, containing over 248,597 Bitcoin, valued at $17.31 billion at the time of reporting.
Tether has declared its intention to allocate 15% of its net profits towards Bitcoin investments, aiming to diversify the assets backing its stablecoin.
On another note, Tether’s USDT saw its market cap hit a historic high of $100 billion on March 4, reflecting a 9% increase since the start of the year.
In the 24 hours leading up to 8:45 am UTC, Bitcoin's price saw a decline of 1.23%, with its trading price at $69,523.
Since March 25, Bitcoin has maintained a support level above $69,000, even amidst the market navigating through its largest quarterly options expiry on March 29.
A potential end to Bitcoin’s pre-halving price correction is suggested by the cryptocurrency surpassing its previous all-time high of $69,000, as analyzed in a video by a pseudonymous crypto analyst, Rekt Capital, on March 26:
“Bitcoin is now peaking beyond this old all-time high, potentially positioning itself for this pre-halving retracement to be over.”
Bitcoin has recorded a new all-time high ahead of its halving event for the first time in its history, indicating a strong market position.
However, according to Basile Maire, co-founder of D8X decentralized exchange and former UBS executive, the halving effect is yet to be fully accounted for in its price.
Furthermore, Bitcoin has marked a remarkable achievement by closing seven consecutive monthly green candles for the first time in its history.
Sources:
https://cointelegraph.com/news/tether-boosts-bitcoin-reserves
https://coinstats.app/address/bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4/
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
