Tether’s Bitcoin Hoard
Tether, the giant stablecoin company, has recently added 8,888 Bitcoin to its holdings. This brings their total stash to nearly 75,400 BTC, making them one of the biggest Bitcoin whales out there.
The Price Puzzle
Usually, such a large Bitcoin purchase would send the price skyrocketing. But surprisingly, Bitcoin has actually dropped below $70,000 since Tether’s buy.
Factors Weighing on Bitcoin
So what’s going on? Experts point to several factors that may be overshadowing Tether’s purchase:
- Retail Liquidations: Trading firm QCP Capital says liquidations on exchanges like Binance have put downward pressure on the price.
- Bitcoin ETFs: Grayscale’s GBTC Bitcoin ETF has seen significant outflows, adding to the selling pressure.
- Derivatives Market: Bears are in control in the derivatives market, with $328 million in long positions liquidated in the last 24 hours.
Bearish Sentiment
These factors have created a bearish sentiment in the market, outweighing the positive impact of Tether’s Bitcoin buy. As a result, Bitcoin is currently trading around $66,500, down over 4% in the last 24 hours.
