Bitcoin price surged beyond $43,800 following the generation of 1 billion USDT by Tether on January 29. Tether has been actively minting, issuing a total of 13 billion USDT since October 20, 2023. This pattern correlates with the upward trajectory observed in the cryptocurrency market in recent months.
Bitcoin 24 hours High $43,822.13
Historically, significant Tether minting has been linked to notable price increases in Bitcoin. The recent uptick in minting activities raises questions about potential volatility in the upcoming period.
According to on-chain data provided by Santiment, the increase in purchasing power suggests that the ongoing mid-term bull cycle, initiated around three months ago in October, may still have room for further growth. This observation is particularly significant, considering there are only 79 days left until the expected Bitcoin halving, scheduled for April 18th.
đź“Š As #Bitcoin‘s & #Ethereum‘s respective supplies have continued moving off exchanges after the #ETF approvals, an interesting development has been #Tether seeing nearly 4% of its available supply come back to exchanges in 5 weeks. The increase in buying power implies
(Cont) 👇 pic.twitter.com/hQrBhZchEu
— Santiment (@santimentfeed) January 30, 2024
Bitcoin ETF Inflows Surpass GBTC Outflows
The Bitcoin price rally on Monday was fueled by a significant shift in the dynamics of spot Bitcoin ETFs and the Grayscale Bitcoin Trust (GBTC). Total inflows into spot Bitcoin ETFs exceeded outflows from GBTC, a notable reversal from the previous week’s selling pressure on Bitcoin.
Fidelity’s spot Bitcoin exchange-traded fund (ETF), FBTC, achieved a noteworthy milestone on January 29 by attracting $208 million in daily inflows. This marked the first time it surpassed the outflows from Grayscale Bitcoin Trust (GBTC) since its launch.
GBTC has experienced a nearly 25% reduction in outflows since January 26, registering the second-lowest outflow day. Analysts interpret this trend as a potential shift in investor sentiment. Simultaneously, newly launched U.S. spot Bitcoin ETFs have seen substantial success, recording a combined volume of $994.1 million on January 29, almost doubling that of GBTC, which had $570 million in volume.
In this context, BlackRock’s spot Bitcoin ETF has emerged as a standout performer, becoming the first to surpass $2 billion in assets. Holding over 52,000 BTC, it underscores the growing demand for Bitcoin in the market.
BTC Price to Rally Post Halving
Anthony Scaramucci, founder of SkyBridge Capital, predicts a significant surge in the price of Bitcoin (BTC) to $170,000 per coin after the next halving event. Scaramucci’s forecast is based on Bitcoin’s historical pattern of reaching new all-time highs after each halving. The halving occurs approximately every four years and reduces the rate at which new BTC is mined by half. This cyclical phenomenon has historically been associated with upward price movements for Bitcoin.
“Go back and look at Bitcoin halving cycles. The day that Bitcoin halves, multiply it by four [and]18 months later and it’s been uncanny that that’s been the price of Bitcoin”.
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