Huge USDT Accumulation By Largest Tether Wallets, Bitcoin Price Spike Soon?
Despite the recent recoiling of the Bitcoin price after the fake news of spot Bitcoin ETF approval, BTC is still holding strong in comparison to the rest of the crypto market. At press time, the BTC price is up by 1.9% trading above $28,700.
However, the Bitcoin price is likely to rally further considering the huge USDT accumulation by top Tether wallets.
Strong USDT Accumulation
As per on-chain data provider Santiment, the top 10 Tether wallets hold a total of 25% of the total USDT supply. The largest Tether wallets experienced significant accumulation surges amid yesterday’s crypto market activity. The top 10 largest wallets now collectively hold a quarter of the entire USDT supply, while the on-chain transaction volume of the leading stablecoin reached a two-month peak, noted Santiment.
Additionally, Tether is witnessing a surge in on-chain activity, marked by a three-month high in active addresses. This has been primarily driven by rising deposits on various exchanges. At the same time, Bitcoin whales have also been accumulating in huge quantities.
How USDT Accumulation Can Help Bitcoin and Crypto Rally?
The surge in USDT accumulation is a positive sign for Bitcoin and crypto. This basically indicates the surge in the buying capacity of investors. Popular crypto analyst Crypto Researcher noted that each $2 billion in USDT inflows has historically corresponded to a 4% increase in Bitcoin’s price. In this context, if the ETF market witnesses a capital injection of $16 billion, Bitcoin’s price could potentially surge above $37,500.
The crypto analyst demonstrated the above example showing Bitcoin surged by +10% even without an official statement from the SEC, driven by unconfirmed news. In this scenario, the actual approval could potentially have a more significant impact, and a rally of +20-30% seems like a reasonable expectation. This would correspond to an influx of $16-24 billion into Bitcoin ETFs.
On the other hand, Bitcoin analysts continue to remain optimistic about the spot Bitcoin ETF approval. The recent events highlight the appetite of investors once the spot Bitcoin ETF comes to the market.
One thing is for sure. Whoever thinks the ETF is already priced in has just been proven wrong. Expect a +20% day move when approved.
— Alex Krüger (@krugermacro) October 16, 2023
- IBIT Bitcoin ETF Becomes BlackRock’s Most Profitable Fund, Nears $100B Milestone
- Bitcoin Tops $126,000 as Market Prices In Three-Week U.S. Government Shutdown
- Paul Tudor Jones Predicts Explosive Bull Market Amid Bitcoin’s ‘Uptober’ Rally
- Robinhood Outage Reported by Users, HOOD Stock Drops
- Tom Lee’s BitMine Adds $820M Worth of Ethereum as ETH Rebounds
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
