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Tether Buys 8,888 Bitcoin for $618 Million—Why Is Price Down?
Tether, the biggest stablecoin issuer, added Bitcoin to its holdings, according to on-chain statistics. The size of the buy has the crypto world wondering why Bitcoin's price has dropped instead of rising.
Tether Buys 8,888 $BTC
Arkham Intelligence reports that Tether bought 8,888 Bitcoin on March 31 and currently possesses around 75,400 BTC. As one of the major Bitcoin holders, Tether has more BTC than some of the largest crypto exchanges and Spot Bitcoin ETF providers.
Last year, the stablecoin issuer declared it would routinely buy Bitcoin for its reserves using its operating revenues. Given their recent success, it's no surprise that the corporation has acquired this much BTC since then.
After this, Bitcoin plummeted below $70,000, which is shocking. Such a large Bitcoin buy should boost Bitcoin's price, not drop it as it did. However, other reasons may have eclipsed Tether's acquisition and caused Bitcoin's precipitous drop.
Bitcoin Price Drop: Why?
QCP Capital explained why Bitcoin fell below $70,000 to $66,000. The business attributed the sudden drop to “large liquidations on retail-heavy exchanges like Binance, which saw perp funding rates go from as high as 77% to flat.”
Grayscale's GBTC Spot Bitcoin ETF, which continues to lose money, may have contributed to Bitcoin's drop. GBTC lost $302.6 million on April 1, adding to these Bitcoin ETFs' $85.7 million net outflows.This increased Bitcoin selling pressure, which is outpacing ecosystem purchasing pressure.
The futures market has also contributed to gloomy market sentiment, with bears in charge. Coinglass reports $409 million in market liquidation in the previous 24 hours, including $328 million in long holdings.
Bitcoin is now selling at $66,500, down almost 4% in 24 hours, according to CoinMarketCap.
