Journalist
Posted:
- Bitcoin’s price rose to $38,000, with many USDT holders showing bullish sentiment.
- Tether continued to show support for BTC, further strengthening the relationship between Bitcoin and USDT.
Bitcoin [BTC] has been looking green for a while now. Many in the cryptocurrency market were suspicious of this trend. However, BTC continued to exceed traders’ expectations.
New highlights
Bitcoin recently reached $38.3K, a level not seen since May 2022. Among the contributors to the BTC surge to $38k were some Tether wallets.
Santiment’s data shows that the top 100 Tether addresses added $1.67 billion in USDT to their wallets over the past six months.
The rising purchasing power of these large Tether addresses, also known as whales, indicates a bullish trend. If this continues, analysts expect Bitcoin to reach $40,000 soon.
🐳💸 #Bitcoin reached $38.3K for the first time since May 5, 2022. Of the many contributors, the top 100 were among the largest #Tether addresses added $1.67 billion in six months. Like a whale $USDT purchasing power continues to rise, $40,000+ $BTC is probably around the corner. https://t.co/Ro5ZA3plvm pic.twitter.com/BXPWFMD0qP
— Santiment (@santimentfeed) November 24, 2023
If Bitcoin breaks through $40,000, it could attract more investors, potentially increasing its value even further in the future. The actions of these major Tether holders often influence market trends, making their continued investments a notable factor in Bitcoin’s trajectory.
Tether turns bullish
Not only USDT holders, but Tether itself was a big supporter of BTC. Earlier this year, the company announced that it planned to buy hundreds of millions of dollars worth of bitcoin.
This move was part of the strategy to diversify its reserves backing the USDT token, aiming for a 1-to-1 peg with the US dollar. Tether plans to invest 15% of its net profit, about $222 million, in bitcoin.
However, a Tether spokesperson clarified that the Bitcoin purchase is only a small portion of the total net profit. Most of their extra income goes towards running the business and covering expenses such as banking 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 Q1/2023, while bitcoin holdings stood at $1.5 billion.
Additionally, Tether is gearing up for a major venture into Bitcoin mining, investing approximately $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 the time of writing, BTC was trading at $37,793.03 and had grown 0.8% over the past 24 hours.
Source: Santiment