April 1, 2024
Bitcoin News

Tether Acquires $618 Million Worth of Bitcoin, Expands Holdings

Tether, the company behind the renowned Tether stablecoin (USDT), created ripples in the cryptocurrency market on March 31 when it acquired 8,888 Bitcoin for $618 million. This purchase dramatically increased Tether’s Bitcoin holdings, which now total 75,354 Bitcoin, acquired at an average price of $30,305.

Impact and Analysis

The decision comes during a period of increased institutional interest in Bitcoin, fuelled by the introduction of US-based spot Bitcoin exchange-traded funds (ETF) and the forthcoming Bitcoin halving, which is set to halve block supply issuance in only 19 days. With this buy, Tether has risen to become the world’s seventh-largest Bitcoin holder, trailing only Binance’s enormous holdings.

An overview of Tether BTC wallet. Source: CoinStats

Tether has revealed plans to invest 15% of its net profit in Bitcoin, indicating a strategy shift to diversify the stablecoin’s underlying assets. This decision comes after Tether’s USDT reached a record $100 billion market capitalization on March 4, representing a significant 9% year-to-date rise.

Market Trends and Bitcoin Price

Despite Bitcoin experiencing a minor 1.23% decline in the 24 hours leading up to March 31, trading at $69,523, the Bitcoin price has maintained robust support above the $69,000 mark since March 25. Pseudonymous crypto analyst Rekt Capital suggested that Bitcoin’s pre-halving correction may have concluded, given its resilience above its previous all-time high of $69,000.

1-month chart of BTC/USDT. Source: CoinMarketCap

Basile Maire, co-founder of D8X decentralized exchange, emphasized that the halving event is not yet fully priced into Bitcoin’s value, despite its recent price surges. Notably, Bitcoin closed seven consecutive monthly green candles, marking a historic milestone in its price trajectory.

Image by freepik

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