👀Tether Withdraws 7628.9 BTC from Bitfinex, Boosting Bitcoin Holdings 👀
Hidden In Pain Sight 👀
12/30/2024 2:31:20 PM
According to EmberCN, Tether, the issuer of USDT, has withdrawn 7628.9 BTC (worth $705 million) from Bitfinex. This transaction is part of Tether's ongoing strategy to purchase Bitcoin using 15% of its profits, a policy announced in May 2023. Currently, Tether holds a total of 82,983 BTC valued at $7.68 billion, making it the sixth-largest Bitcoin wallet. The average cost of their Bitcoin holdings is approximately $36,222, and they are currently enjoying an unrealized gain of $4.72 billion.
Source: https://blockchain.news/flashnews/tether-withdraws-7628-9-btc-from-bitfinex-boosting-bitcoin-holdings
There is considerable debate and analysis regarding whether Tether manipulates Bitcoin's price. Here are some key points based on the available information: - Coordinated Supply and Market Manipulation: It has been suggested that Tether's creators might use the stablecoin to manipulate cryptocurrency prices. When Bitcoin prices fall, Tether can be converted into Bitcoin to push its price up. Subsequently, some Bitcoin can be sold back into dollars to replenish Tether reserves as the price rises [0]. - Correlation vs. Causation: While there is a theory that Tether issuances lead to corresponding rises in Bitcoin prices, it is important to note that correlation does not necessarily imply causation. Other factors, such as speculation and manipulation across unregulated exchanges, also drive Bitcoin's volatility [1].
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Market Stabilization: During periods of market decline, new Tether has often entered circulation in amounts sufficient to stabilize Bitcoin prices by boosting demand. This raises the question of whether new Tether props up Bitcoin or if Bitcoin's price impacts Tether issuance [2].
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Academic Study Findings: An academic study found that a particular player on the Bitfinex exchange uses newly printed Tether to purchase Bitcoin when its prices fall, effectively supporting Bitcoin's price [3].
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Historical Impact: A study highlighted that a small fraction of Tether trading activity could have been responsible for a significant rise in Bitcoin's price during 2017. Specifically, 87 hours of Tether trading (amounting to 1% of total trading activity) could account for a 50% increase in Bitcoin's price[4].
These points indicate that there is evidence suggesting Tether may have been used to influence Bitcoin's price, although the full extent and mechanisms remain subjects of ongoing analysis and debate.