How USDT Growth Will Impact Bitcoin [BTC]? According to these data…

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Tether has invested a large portion of its profits in BTC. However, BTC miners have grown skeptical.

After the collapse of Silicon Valley Bank (SVB), Tethers [USDT] biggest competitor, Circle [USDC], was seriously affected. Due to the FUD caused by this, USDT could capture a large market share in the stablecoins sector.

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A win-win for BTC and USDT?

As the overall profits generated by Tether, its parent company, skyrocketed, a large portion of those profits were allocated to buying US Treasuries. However, there were other avenues where Tether invested. A huge amount of their income was invested in Bitcoin [BTC].

According to the data, Tether holds $1.5 billion worth of BTC in its reserves.

In the first quarter alone, Tether acquired 52,670 BTC. If Tether continues to dominate the stablecoin market, there could be positive implications for the price of BTC.

Inasmuch, Andrew Kang, CEO of Mechanism Capital, a crypto investment firm, said that if Tether continues to buy BTC with its profits, it could undermine the selling pressure on BTC that would occur due to US government assets.

Source: Attachment

At press time, the US government has large sums of seized Bitcoin that it plans to sell in four phases throughout the year.

The US government’s decision to sell off these holdings has caused massive amounts of FUD to hit the market, with many traders believing that these sales could drive down the price of BTC.

However, if Tether continues its bullish behavior, it is possible that the impact of US government actions will be undone in the future.

HODLers keep calm

At press time, there was not much selling pressure on Bitcoin as addresses in profit had declined to one-month lows. This indicated that many addresses currently holding BTC did not have a strong incentive to sell their holdings.

See more

#Bitcoin $BTC Profit Address Count (7d MA) Just Hit a 1-Month Low of 31,167,820.077

View metric: https://t.co/qLnvDYVzPt pic.twitter.com/zVTHt6mrKV

glassnode alerts (@glassnodealerts) May 14, 2023

ReadBitcoins [BTC] Price Prediction 2023-2024

Even though BTC addresses continued to HODL, Bitcoin miners did not exhibit the same behavior. According to data from Glassnodes, Bitcoin miner outflows have increased. This behavior showed that many miners could face high selling pressures and sold their holdings.

There will be a negative impact on BTC if this behavior of miners continues.

Source: Glassnode

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