USDT dominance could close below its 200-week moving average for the first time ever, potentially signaling a shift in power from stablecoins to riskier assets like Bitcoin.
Bitcoin Price Jumps on Monday, Spurring Market Analysis coincides with Tether’s minting activity, By Wednesday moring, the coin has bounced off the $42,800 support after a brief consolidation on Tuesday.
Tether Treasury has conducted a significant transfer of 230,000,000 USDT tokens to the popular exchange, Bitfinex. This transaction, valued at approximately $229,956,875, has garnered attention within the crypto community due to its substantial volume and potential implications for the market.
Tether, the largest stablecoin issuer, bought 8,888 bitcoins in Q4 2023, increasing its total holdings to 66,465 BTC, worth $2.8 billion. Tether said it will invest part of its profits in BTC as a long-term strategy. Tether’s bitcoin holdings represent 0.3% of the total supply of bitcoin.
Tether, the issuer of the controversial stablecoin USDT, has voiced strong disagreement with a recent UN report highlighting its alleged involvement in illicit activity. In a statement, Tether expressed disappointment in the “singling out” of USDT, arguing that the report “ignores its role in helping developing economies in emerging markets.” To underscore its commitment to combating financial crime, Tether pointed to its freezing of over US$300 million in suspicious funds within the past few months. This move, according to Tether, demonstrates its active participation in curbing the criminal misuse of cryptocurrencies.
Tether, the largest stablecoin issuer, has increased its bitcoin holdings by withdrawing 8888.88 BTC (about $379 million) from Bitfinex, one of the leading cryptocurrency exchanges. According to Bitinfochart, Tether’s withdrawal has made it the tenth largest BTC holder, with a total of 66465.2 BTC ($2.82 billion) in its wallet. The average cost price of Tether’s bitcoin stash is $25,176, which means that the company has made a profit of $1.148 billion (+68%) from its bitcoin investment. Tether’s move comes amid growing scrutiny from regulators and investors over its reserves and transparency, as well as its influence on the cryptocurrency market.