Bitcoin price reached $38,300 last week, hitting a new high since May 5, 2022. Blockchain analysis company Santiment stated on the X platform that among many contributors, the top 100 Tether addresses increased their holdings of $1.67 billion USDT stablecoin within 6 months, with a purchasing power growth of 9.7%. If the purchasing power of whales’ USDT continues to increase, Bitcoin breaking through $40,000 could be imminent.
As Tether whales boost the price of Bitcoin, the amount of USDT held experienced a two-week decline, according to Santiment. Santiment also pointed out that from August 19 to October 16, 3.54% of Tether’s total supply and 0.72% of USDC’s total supply were transferred to exchanges, indicating a precursor to the comprehensive rebound of cryptocurrencies from late October to mid-November. After a period of cooling off, the return of USDT and USDC to exchanges is crucial for the sustained significant growth in market capitalization in the final 5 weeks of 2023.
Stablecoin supply continues to grow
Will Clemente, founder of Reflexivity Research, stated on November 11 that for the first time in a year and a half, the 90-day change in stablecoin supply turned positive, indicating a net capital inflow into the crypto market since the beginning of this bear market.
Two weeks later, Will Clemente indicated on Monday based on the latest data that stablecoin supply had increased by $2.2 billion, a 2.8% increase in the past 90 days, leading to a “continuing improvement in on-chain liquidity.”