Over the past six months, Tether whales, influential crypto asset holders, have significantly increased their USDT holdings. This accumulation trend is being interpreted by analysts as a sign that whales may be preparing for a large cryptocurrency purchase in the market. This adds about $1,67 billion worth of stablecoins.
According to on-chain analytics firm Santiment, the purchasing power of these Tether whales grew by 9,7% during this period. The increase in USDT reserves in their wallets is seen as an indication that if history repeats itself, there could be an upward push in the Bitcoin price (BTC), as occurred in previous situations. Historically, it has been observed that USDT holdings tend to decrease as the BTC price increases, indicating the use of the stablecoin to acquire other cryptocurrencies.
# Bitcoin reached $38.3K for the first time since May 5, 2022. Among many contributors, the top 100 largest #Teth is addresses have added $1.67B in 6 months. If whale $ USDT buying power continues increasing, $40K+ $ BTC is likely to be around the corner. https://t.co/Ro5ZA3plvm pic.twitter.com/BXPWFMD0qP
- Santiment (@santimentfeed) November 24, 2023
A previous report from Santiment previously highlighted that between mid-August and October, a significant portion of Tether's total USDT supply and Circle's USDC supply were transferred to cryptocurrency exchanges. This move preceded a rally across the cryptocurrency market, which lasted until mid-November. After a period of cooling, more stablecoins are now returning to trading platforms, while the supply of Bitcoin on exchanges is in decline. This suggests that demand for Bitcoin may soon increase, even as supply slowly dwindles.
Analysis Suggests USDT Accumulation Could Boost BTC Price
At the same time, large financial institutions, which together manage approximately US$27 trillion in assets, are exploring opportunities in the Bitcoin and cryptocurrency market. This trend is getting a boost following the rush to list the first Bitcoin exchange-traded fund (ETF) in the United States. Companies like BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America are making inroads into the cryptocurrency space. It is important to note that only a fraction of this colossal amount of assets under management reaches the channel for investments in cryptocurrencies.
Top Tether whales appear to be strategically positioning themselves to buy ahead of a possible unexpected launch of a Bitcoin ETF in the United States. This would allow investors to gain exposure to the cryptocurrency without the need to hold private keys, thus increasing demand for the asset.