Connect with us
Active Currencies 14778
Market Cap $2,557,616,555,646.10
Bitcoin Share 51.24%
24h Market Cap Change $0.70

How will USDT’s growth impact Bitcoin [BTC]? According to this data….

2min Read

BTC could see green as USDT’s firm Tether continues to invest in Bitcoin. Holders stay positive about BTC but miners turn skeptical.

How will USDT's growth impact Bitcoin [BTC]? According to this data....

Share this article

  • Tether invested a large portion of profits into BTC.
  • However, BTC miners got skeptical.

After the collapse of the Silicon Valley Bank (SVB), Tether’s [USDT] biggest competitor, Circle [USDC], got impacted severely. Due to the FUD caused by this, USDT could capture a large amount of market share in the stablecoins sector.


Is your portfolio green? Check out the Bitcoin Profit Calculator


A win-win for BTC and USDT?

As the overall profits generated by Tether, its parent company, skyrocketed, much of these earnings were allocated to buying U.S. treasury bills. However, there were other avenues where Tether invested. A huge amount of their earnings were invested in Bitcoin [BTC].

According to the data, Tether has $1.5 billion worth of BTC held in its reserves.

In Q1 alone, Tether acquired 52,670 BTC. If Tether continues to dominate the stablecoin market, there could be positive implications for BTC’s price.

Inasmuch, Andrew Kang, CEO of Mechanism Capital, a crypto investment firm, stated that if Tether continues to buy BTC with their profits, it could undermine the selling pressure on BTC that would occur due to U.S. government’s holdings.

Source: Tether

At press time, the U.S government held large sums of seized Bitcoin that it is planning to sell in four phases throughout the year.

The U.S. government’s decision to sell these holdings has caused massive amounts of FUD in the market, with many traders believing that these sell-offs could drive down the price of BTC.

However, if Tether continues its bullish behavior, there may be a possibility that the impact of U.S government’s actions could be negated in the future.

HODLers remain calm

At press time, there wasn’t a lot of selling pressure on Bitcoin, as addresses in profit had declined and reached one-month lows. This indicated that many addresses currently holding BTC did not have a large incentive to sell their holdings.


Read Bitcoin’s [BTC] Price Prediction 2023-2024


Even though BTC addresses continued to HODL, Bitcoin miners did not exhibit the same behavior. According to Glassnode’s data, Bitcoin’s miner outflow increased. This behavior showed that many miners could face high amounts of selling pressure and have sold their holdings.

There will be a negative impact on BTC if this behavior from miners continues.

Source: Glassnode

Share

Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.