Blockchain data points to an increase in high-volume Tether (USDT) addresses, making it more likely for big investors to buy Bitcoin and Ethereum at the bottom.
Data from analytics company Santiment points to an increase in USDT holdings at the largest Tether addresses. Accordingly, the amount of fixed crypto assets in wallets with a balance of 10,000 USDT to 1 million USDT has increased by $1.06 billion over the past month. This increase corresponds to over 2.5 percent of the amount of USDT in circulation. As such, this brings to mind the possibility that the largest Tether holders may switch to crypto asset purchases, which are currently at low levels.
"Whales and sharks provide alpha through #stablecoin behavior, just as they do with their $BTC and #altcoin accumulation and dumping. In the last month, addresses with 10k to 10m #Tether have added $1.06b in buying power, 2.7% of the total supply."
In his comment on Tether accumulation, Santiment stated that the behavior of large and medium-sized wallet owners to hold or sell fixed crypto assets can be an effective move in the prices of crypto assets, especially Bitcoin.
While the data shows that the Tether treasury has minted more than $1 billion in USDT, it is seen as another sign that the increase in the circulating supply of Tether is increasing the purchasing power of cryptocurrencies.
There are also positive signs for Ethereum (ETH)
Despite the downward trend that has lasted for about 6 months, the holdings in the largest Ethereum wallets with 1 million to 10 million ETH have seen an increase of about 2 percent. Wallets holding Ethereum in this range represent 21.6 percent of the circulating supply, with the balance increase keeping confidence in Ethereum alive.