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- Recent data shows that whales’ USDT deposits in crypto exchanges have drastically accelerated in the last couple of weeks.
- This could be a positive sign for the cryptocurrency market, signaling that these whales are getting ready to buy digital assets.
USDT whale activity has increased drastically according to crypto analytics firm Santiment. Specifically, whales are depositing USDT in crypto exchanges. According to the analytics firm, it has witnessed an upsurge that has seen the records reach well over $9,990,000,000 in Tether (USDT) deposits in exchanges. This is a record level not seen since March 2023. It is clear that USDT which is issued by Tether aims to maintain a 1:1 peg with the US dollar notched to a three-month high in active addresses due to the increased interest in the crypto market from whales.
Santiment defines USDT whales as accounts that hold between $1M to $10M in USDT. These are generally regarded as the movers and shakers of the market as they easily influence prices. As they move to buy, they create massive demand and push prices higher.
🤑 #Tether is seeing an increase in #onchain activity, with active addresses hitting a 3-month high, largely due to increases in exchange deposits. Additionally, wallets with $1M-$10M in $USDT have been accumulating. Both indicate interest in future buys. https://t.co/qOUznVTgTb pic.twitter.com/cuDKWCnJwt
— Santiment (@santimentfeed) October 10, 2023
Santiment notes that the rise highlights the increased buying power which could be a bullish sign for the crypto market. In comparison, USDT peaked at $16.96 billion on exchanges in August 2022.
The $9.99 billion worth of Tether sitting on exchanges is the highest level of buying power for crypto’s top stablecoin in approximately seven months. Since June 13th, these exchanges have seen a 40% increase in available USDT.
Based on this on-chain analysis, it is likely that whales are preparing to buy into the crypto market. The USDT held in exchanges is often used or swapped for cryptocurrencies such as Bitcoin (BTC).
USDT Whales Looking to Buy the Bitcoin (BTC) Dip?
Bitcoin (BTC) has been attempting to break out but continues to struggle to climb above $28,000. All previous attempts, of which many have come in the last couple of weeks, have seen this position rejected leading to a drop to $27,500 where the digital asset had been enjoying strong support. However, this was recently breached leading to further losses.
At the time of press, BTC is trading at $26,700. This was a result of the $27,000 support being breached and BTC losing nearly 5 percent in the last 7 days. It seems whales are gearing up to take advantage of the dip to accumulate more coins.
Earlier this week, multinational banking giant Standard Chartered predicted that Bitcoin will end the year around $50,000 while Ethereum could reach $8,000 by 2026. In 2024, the bank foresees further gains and expects BTC to reach $100,000 primarily driven by the Bitcoin halving.
Read More: Bitcoin Halving to Drive BTC Price to $120,000 by 2024 – Standard Chartered Report
Furthermore, there is lingering excitement surrounding the approval of a Bitcoin spot ETF. According to former BlackRock executive Steven Schoenfield, BlackRock’s spot Bitcoin ETF could potentially gain approval from the SEC within the next 3-6 months. All these factors lead many investors to believe that the current lows might not come around again and this might be the best opportunity to generate generational wealth.
