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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
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