The largest Tether (USDT) whales have been growing their holdings over the past six months, adding in $1.67 billion worth of the stablecoin, in an accumulation trend that suggests they’re getting ready to buy cryptocurrencies on the market and potentially helped BTC’s price surpass $40,000.
According to on-chain analytics firm Santiment, the buying power of the largest Tether whales has grown by 9.7% over the past six months as they added $1.67 billion worth of USDT to their wallets. If history is to repeat itself, BTC’s price could be pushed higher, as in the past while USDT holdings dropped as BTC’s price rose while they were using the stablecoin to buy crypto.
An earlier report from Santiment noted that between mid-August and mid-October, 3.54% of the total supply of Tether’s USDT and 0.72% of the supply of Circle’s USDC moved to cryptocurrency exchanges ahead of a market-wide rally.
That rally lasted to mid-November, and after a period of cooldown more stablecoins are now returning to cryptocurrency trading platforms. Meanwhile, Bitcoin’s supply on exchanges is dropping, which suggests demand could soon surge while supply is slowly dropping.
Earlier this year, major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.
Financial behemoths, include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America, started making inroads into the cryptocurrency space after the world’s largest asset manager BlackRock filed to list a spot Bitcoin exchange-traded fund (ETF) in the United Stats on June 16.
The $27 trillion figure, it’s important to point out, represents a grand total of assets under management across the aforementioned institutions, and only a minuscule fragment of this gargantuan sum is anticipated to be channeled into cryptocurrency investments.
Major Tether whales are seemingly getting ready to buy ahead of an unexpected spot Bitcoin ETF launch in the United States, which would allow investors to gain exposure to the cryptocurrency without owning private keys and bring in additional demand for it.
Featured image via Pixabay.