As the crypto market gently begins the year 2024, a resounding event shook the sphere this week. Tether, a stablecoin giant, made a massive purchase of 8,888.88 bitcoins for a total value exceeding $379 million. A spectacular transaction that says a lot about market sentiment.
An extraordinary transaction with the scent of trust
The company behind this colossal purchase is none other than Tether, based in the British Virgin Islands. The Bitfinex exchange platform is said to be the intermediary that provided the bitcoins. She is now among the 10 largest holders of BTC.
With this acquisition, Tether brings its bitcoin reserves to a total of 66,465 BTC, for a valuation of more than $2.8 billion. The average purchase price is $25,176, which would already represent a latent profit of 68% compared to the current price.
This unusual transaction clearly reflects Tether’s optimism about Bitcoin’s prospects for 2024 and beyond. The stablecoin giant is positioning itself aggressively before a possible surge in price.
A buoyant context for bitcoin
This massive purchase takes place in a generally buoyant context for Bitcoin. After falling below $16,000 in November 2022, the price has begun a solid recovery in recent weeks. BTC is now trading around $42,600, closing in on its all-time high.
This positive dynamic can be explained in particular by the renewed interest generated by a possible approval of a Bitcoin ETF in the United States in the coming months. Many analysts believe such an investment product would attract billions of dollars of institutional money, propelling the stock to new highs.
Hence Tether’s clear desire to position itself as long as bitcoin is still trading at a relatively low price. The stablecoin giant is clearly anticipating an upcoming surge and does not want to miss it.
Towards new historic highs in 2024?
With this transaction, Tether joins other major players in the crypto sphere in measured optimism for 2024. Figures like Michael Saylor remain convinced of the potential of bitcoin to generate massive returns in the long term.
Saylor even thinks that BTC could surpass its previous all-time high of $69,000 and aim for the mythical $1 million milestone in the long term. Such a scenario obviously requires an increasingly broad adoption of institutions in the years to come.
Tether’s massive purchase of bitcoin to start 2024 marks an important milestone. It demonstrates the growing confidence of major crypto players in the future of bitcoin. It remains to be seen whether the experts’ optimistic predictions will come true, but these types of large transactions send a strong signal. The queen of crypto does not seem ready to give up her crown.
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