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Data Shows Whales Are Accumulating USDT To Buy Bitcoin And Ethereum At Lower Prices

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Santiment analysts have found that top Tether addresses are increasing their USDT holdings to buy Bitcoin and Ethereum At lower prices.

According to Santiment observations, the total value of stable coins at addresses with a balance of 10,000 USDT to 1 million USDT increased by $1.06 billion over the past month. This is an increase of 2.7% of the total Tether supply. In simple words, Top USDT whales have added $1.06 billion USDT increasing their buying power to purchase Bitcoin on dips or when it is cheaper.

Santiment is convinced that major players seek to acquire digital gold at a lower price. By accumulating stable coins, the whales are “increasing their purchasing power.”

Santiment writes: “Whales and sharks provide alpha through stable coin behavior, just as they do with their BTC and altcoin accumulation and dumping. In the last month, addresses with 10k to 10m Tether have added $1.06b in buying power, 2.7% of the total supply.”

Analysts also saw a net outflow of BTC from centralized exchanges. In standard cases, when Bitcoin price falls, exchange flow grows as investors tend to sell their holdings because of falling markets. But in the case of BTC, where prices are near the 6-month bottom, 21 of the past 26 weeks saw bitcoin moving off the exchanges that onto the exchanges, which shows long-term investors’ blind trust in Bitcoin.

Santiment says: “Bitcoin continues to see coins moving off of exchanges while prices are near a 6-month bottom. Interestingly, 21 of the past 26 weeks saw $BTC moving more off of exchanges than on to exchanges.”

Santiment data also show positive signs for Ethereum. According to the information, despite price correction over the 6-month timeframe, top ETH addresses holding 1M to 10M Ethereum have increased their holding by 2.2%, showing long-term and major holders’ confidence in the coin. Addresses with balances between 1M ETH and 10M ETH currently hold 21.6% of the total Ether supply.

According to Santiment: “Ethereum‘s billionaire addresses (holding 1m to 10m ETH) have shown nice price alpha, historically. Currently, these addresses hold 21.6% of all ETH. They have accumulated 2.2% more of the supply over the past six months despite the price correction.”

Data from whales stats show that over 1 Billion in USDT was minted at Tether Treasury, increasing the buying power of market movers.

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Albert Brown
Albert Brown
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.


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