Data from the chain shows that the The world’s largest stablecoin issuer, Tethermore recently added Bitcoin to his possessions. The size of the purchase has led the crypto community to speculate as to why Bitcoin’s price has instead fallen, while such a development is generally bullish for the crypto token.
Tether acquires 8,888 BTC
Facts of the blockchain analytics platform Arkham Intelligence shows that Tether acquired 8,888 Bitcoin on March 31, and the stablecoin issuer now owns almost 75,400 BTC. With its BTC stake, Tether is now one of the most prominent largest Bitcoin holderswith even more BTC than some of the most prominent crypto exchanges and Discover Bitcoin ETF Issuers.
Last year the publisher of stablecoin announced his plan to buy Bitcoin regularly for its stablecoin reserves, using some of the profits from its operations. It is no surprise that the company has since been able to acquire this amount of BTC, especially with the success they have recently achieved.
What is surprising, however, is that Bitcoin has since fallen below $70,000 as a result of this development. Usually one Bitcoin purchase Such a magnitude should have a positive impact on Bitcoin’s price and not cause a price drop like the one currently experiencing. However, there is reason to believe that other factors overshadowed Tether’s purchase and caused Bitcoin to see this sharp correction.
Why Bitcoin Price Is Falling
Crypto trading company QCP Capital recently as long as insights into why Bitcoin’s price fell below $70,000 and dropped to $66,000. The company claimed that the sharp downward move was due to the “large liquidations on retail-heavy exchanges such as Binancewith funding rates for perpetrators going from as high as 77% to flat.”
Specifically the Spot Bitcoin ETFs GBTC in grayscale, also appear to have contributed to Bitcoin’s decline, as Grayscale continues to experience significant outflows from its fund. On April 1, GBTC saw a outflow of $302.6 million, which mainly contributed to the combined net outflows of $85.7 million recorded by these Bitcoin ETFs. This has led to more sales pressure on Bitcoin, which is currently overwhelming the buying pressure in the ecosystem.
Activity in the derivatives market has also played a role in the bearish market sentiment, with the bears appearing to have firm control of the price. Coinglass data shows that $409 million was liquidated from the market in the last 24 hours, with $328 million in long positions wiped out in this period.
At the time of writing, Bitcoin is trading around $66,500, down more than 4% in the past 24 hours. facts from CoinMarketCap.
BTC price falls to $65,000 | Source: BTCUSD on Tradingview.com
Featured image from CFA Institute Blog, chart from Tradingview.com
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