Key Points
- Tether buys 8,889 more Bitcoin just ahead of the halving event.
- At press time, Bitcoin is priced at around $70k, up by about 4% in the past week, which means that Tether’s latest purchase is worth about $620 million.
Tether, USDT’s issuer, is advancing in its race to purchase more Bitcoin ahead of the halving. Tether has purchased 8,889 more BTC and the recent acquisition has boosted Tether’s total Bitcoin reserves to over 75,000 BTC, valued at more than $5.3 billion.
Over the last year, Tether has significantly increased its holdings of Bitcoin. The company disclosed its BTC reserves in the first quarter of 2023.
They have also mentioned that they consistently invest up to 15% of their corporate profits generated from excess Tether stablecoin reserves in Bitcoin.
Tether CEO Paulo Ardoino addressed their strategy of investing in Bitcoin.
“The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset.”
Bitcoin is just ahead of the halving event, which is scheduled to take place on Friday, April 19. At the moment of writing this article, BTC is trading in the red, and the coin is priced at just under $70k, on CoinMarketCap.
Ahead of the important event, investors are preparing for the price fluctuations that are typically associated with it.
The previous Bitcoin halving, which occurs approximately every four years and reduces the rewards for mining a block by half, led to a volatility index exceeding 9% for Bitcoin (BTC).
Bitcoin optimistic predictions
There have been a lot of optimistic predicitons about the price of Bitcoin lately, and one of them suggests that we might expect to see a huge injection of $1 trillion in Bitcoin via the ETFs. The positive view on BTC comes from Bitwise CIO.
1% Down; 99% to Go. Reflections on the ETF launch.
An excerpt from Bitwise CIO @Matt_Hougan's weekly memo to investment professionals.
Lately the crypto markets have been volatile, with bitcoin bouncing between $60,000 and $70,000. The media gets breathlessly worried about…
— Bitwise (@BitwiseInvest) March 27, 2024
In a recent weekly investor note, Matt Hougan stated that institutions are expected to invest over $1 trillion in Bitcoin through ETFs in the upcoming year.
Also, BlackRock’s Larry Fink also highlighted the company’s spot BTC ETF, which experiences unprecedented growth, making it the fastest-growing ETF ever.
