The price of the flagship cryptocurrency Bitcoin has moved up over 130% over the past year and the accumulation has seemingly seen the supply of BTC on cryptocurrency trading platforms drop to its lowest level since December 2017 to now stand at 5.38%.
According to on-chain analytics firm Santiment, Bitcoin’s supply on exchanges has been dropping steadily over the last few months as traders move their funds to wallets under their control, which means there’s less BTC available on the market to be bought.
Meanwhile, as reported, Tether whales have accumulated $1.67 billion worth of USDT, suggesting they’re getting ready to buy cryptocurrencies on the market in a buying spree that could see the price of BTC surpass the $40,000 mark.
Per Santiment, the 10 largest Tether exchange wallets currently hold $15.2 billion worth of the stablecoin, the largest amount since June 2022, suggesting cryptocurrency investors are currently waiting on the sidelines before moving in.
If history is to repeat itself, BTC’s price could be pushed higher, as in the past while USDT holdings dropped as BTC’s price rose while they were using the stablecoin to buy crypto.
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A potential catalyst for investors to allocate their USDT could be the potential launch of a spot Bitcoin exchange-traded fund (ETF) in the United States. Earlier this year, major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.
Financial behemoths, include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America, started making inroads into the cryptocurrency space after the world’s largest asset manager BlackRock filed to list a spot Bitcoin exchange-traded fund (ETF) in the United Stats on June 16.
The $27 trillion figure, it’s important to point out, represents a grand total of assets under management across the aforementioned institutions, and only a minuscule fragment of this gargantuan sum is anticipated to be channeled into cryptocurrency investments.
Major Tether whales are seemingly getting ready to buy ahead of an unexpected spot Bitcoin ETF launch in the United States, which would allow investors to gain exposure to the cryptocurrency without owning private keys and bring in additional demand for it.
Featured image via Unsplash.
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- Source: https://www.cryptoglobe.com/latest/2023/11/bitcoin-btc-supply-on-exchanges-drops-to-6-year-low-as-tether-whales-eye-market-entry/
