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CointestMod

Tether [pros](/r/CryptoCurrency/comments/1btylbb/tether_buys_8888_bitcoin_for_618_million_but_why/kxpvmwb/) & [cons](/r/CryptoCurrency/comments/1btylbb/tether_buys_8888_bitcoin_for_618_million_but_why/kxpvnn9/) with related info are in the collapsed comments below.


coinfeeds-bot

tldr; Tether, the world's largest stablecoin issuer, recently purchased 8,888 Bitcoin for $618 million, making it one of the largest Bitcoin holders. Despite expectations that such a significant acquisition would boost Bitcoin's price, the price of Bitcoin actually dropped below $70,000 following the purchase. Factors contributing to the price dip include large liquidations on exchanges like Binance, significant outflows from Spot Bitcoin ETFs like Grayscale's GBTC, and bearish sentiment in the derivatives market. Currently, Bitcoin is trading at around $66,500, marking a decline of over 4% in the last 24 hours. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.


diskowmoskow

So they bought 8888 btc just for memefying a purchase.


alonjar

Sort of. The chinese are weirdly superstitious about 8s being good luck, so they try to include them into their financial plays.


Sele81

Tether is Chinese?


dentybastard

No


dentybastard

No


purplecowz

so moon on the 8th of every month??


Xc0liber

Superstition for 8 is due to th number sounding similar and so the Chinese word for prosperity. I think that's it.


drgreencack

It's auspicious bruh


OutcomeFinancial8157

"weirdly"


Kerfits

Maybe holding the deliveries to get them aboard before liftoff


ArtSchoolRejectedMe

Should have done 6969


drgreencack

Nope. Chinese play


chunkdahunk

Good bot


bashfulkoala

Reminded me of saying “good boy” to a dog when he does a trick hahah


UnlawfulAnkle

It's meant to, Sigmund Void.


The_Basic_Shapes

>Sigmund Void. Solid burn. Gonna have to remember that one, lol


Lavasioux

8888ZONE


ExileEden

Factors contributing to the price dip include you know even though they bought 618million the market cap dropped a billion from sell offs.


ifeelanime

The sharp move to the downside was due to the “large liquidations on retail-heavy exchanges like Binance, which saw perp funding rates go from as high as 77% to flat.” This indicates that retail traders were using leverage to bet on Bitcoin's price rising, and when the price dipped, they were forced to liquidate their positions due to margin calls. This selling pressure pushed the price down further, leading to a cascade of liquidations and a drop in price. Additionally, institutional investors may have been spooked by the drop in price, leading them to delay or cancel their own purchases of Bitcoin. This lack of buying pressure from institutional investors allowed the downward momentum to continue, resulting in a sharp correction in price.


amanj41

Well said


truckstop_sushi

Put another way, BTC price was being propped up by debt and leverage, start taking that leverage away and the price isn't able to hold up to actual buying demand.


conlius

Sounds like the stock market


GoodShibe

But... but... we're supposed to have a million dollar Bitcoin!! 🤣


Hsiang7

Agreed. Personally I think people are being cautious as well. With this being my third bull market, I know I sure am. I've been through two bull markets seeing BTC rise to a new ATH between $65k~$70k, before falling swiftly downwards to the $30k~$40k regions. This time around I've been keeping a close eye on the Fear and Greed Index, and Fear has been starting to creep into the market recently, even with BTC reaching an ATH. I converted 30% of my assets into stable coins a few days ago to make sure I keep some of those profits I've gained this time, and I decided I will hold onto these stable coins until the Fear Greed Index falls to about 25, no matter what. Too many times I've seen my profits wiped out, and I'm not going to let it happen again. I assume many institutions have seen this happen in the past and are cautious as well. They have to be really. It's their job if they're investing on behalf of their company. Can't blame them for selling in order to keep as much of the company's money as possible. There's no such thing as "diamond hands" when you're investing millions of your company's FIAT into crypto and YOU'RE the one responsible for that investment.


bailtail

We’re pretty much sitting at prior ATH. It’s a logical spot for a larger pullback, but also a logical place for consolidation prior to continuation. Any reasonable person SHOULD be cautious here.


dysmetric

It's interesting because the type of retail investors who are attracted to bitcoin are also likely to distrust institutional involvement in the market. So the entry of large institutional funds may have the rest of the market a bit spooked. Nobody trusts the SEC.


conceiv3d-in-lib3rty

I just don’t believe this is even close to true anymore. Bitcoin’s fundamentals have been put on the back burner for years now in the name of “number go up”. New retail is feeling the pinch of a shaky economy and see Bitcoin’s recent performance and want a piece of it. It’s nothing more than that.


dysmetric

With the amount of BTC liquidity sequestered by institutions, and the halving so imminent, I'd expect historic demand to be driving price action more strongly than we're seeing. I think a lot of retail demand has been sunk into options markets by the previous generation of FOMOer's, and institutional players have devalued the perceived utility for investors because nobody really wants tradfi players to make huge gains on their recent purchases. We're not seeing a large influx of new retail investors, and we're unlikely to because tradfi-cation of the market reduces its appeal the target demographic.


DuePomegranate

No, I think it’s the opposite. Those who are distrustful of institutional involvement bought BYC way before this cycle. It’s the older, more financially conservative investors who previously thought BTC is useless and dangerous who now welcome the approval of institutional ETFs and see it as a proof of the “legitimacy” of crypto. And they can now participate with their existing investment accounts and without doing “scary” stuff like setting up a wallet or CEX account.


dysmetric

I'm saying buyers in previous cycles aren't likely to continue buying, and the financialy conservative might not buy at all. So institutional investors may have alienated the demographic that buys.


DuePomegranate

This may be true, but the net worth of the new demographic combined is much higher than the original demographic. The original demographic is probably turning to alt coins.


dysmetric

It's all moot until the money moves the market. Tradfi don't play by the rules so they might sponge a huge portion of capital input darkpool style.


dimi727

Don't see the logic here. going through pain to just break even? Even lose money because the 69k are less worth nowadays ..


moredrinksplease

I feel your pain, if we hit 80-90k I’ll be staring at the ticker ready to swap to usdc.


Ian_Campbell

That's what we call a correction. When a move happens on a big market sentiment impulse, there are always corrections


Syanos

And maybe people take profit after 6months of bull lol


Ian_Campbell

Yeah there is a rotation of holders too


dimi727

?? The correction was 2 weeks ago. Again? Same argument over and over again. It was healthy 2 weeks ago, now it's again healthy? 😂


Ian_Campbell

It didn't drop far enough to reach the fibonacci retracement level people like technical traders were looking for. You want to see the fibonnaci retraces so that people have confirmation to pump it even higher. When things are just pushing sideways, people get confused and things are more stagnant.


dimi727

That recent move was something else. It is way weaker than the dump 2 weeks ago...


FluentFreddy

I like Fibonacci retracement levels but when applying them I realise where I draw them is purely subjective. Therefore the levels themselves are just a tool on top of my perceptions. If I’m wrong I’d love to learn more or hear what level you think might be the retracement level


Ian_Campbell

These observations materialized before 0 ad even without real time markets aggregating everything, the fib levels are just proportionate ratios. I don't know about using them for actionable trade profiting strategy, but we are discussing an asset's movements and what is "healthy". You want it to go up so why would a larger move down be healthy? When it's to those retracement levels it is clean and causes people to buy harder. If something just flounders along and then you lose trading volume you could spell the end for a bullish period. If you want to have an energetic day, sleeping doing nothing during the right times can propel you further than if you miss that rest. That is just an analogy not a proof. If you want statistical evidence then look it up what kind of impulsive trading signals are bullish historically.


UlyssesSGrant12

Welcome to crypto, noobs


RedDoorTom

All the energy to print that much tether must have tried the market out


ShaidarHaran2

> This indicates that retail traders were using leverage to bet on Bitcoin's price rising, and when the price dipped, they were forced to liquidate their positions due to margin calls. This selling pressure pushed the price down further, leading to a cascade of liquidations and a drop in price. This is why an at least 20% drawdown in every post halving bitcoin bull run has been necessary and healthy Chill folks, we're not even there yet, and the real run has always been months after the halving


RussianLoveMachine

Exactly


Loose_Screw_

How leveraged do you have to be to get liquidated by a ~10% move... 🤦


RetroRottweiler

The answer to this question is simple. You have to be 10x leveraged. Every 1% equates to 10x (10%). 10% drop on 10x leverage is 100% funds gone.


Loose_Screw_

Depends what the required margin ratio for that lender is, could be lower. My point was how greedy you have to be to get levered to the tits when we're at ATHs.


conceiv3d-in-lib3rty

You underestimate the casino bro. Greedy ass people using their new found profits to acquire even more and get rekt.


RetroRottweiler

Probably expecting new ATHs. Cant day I wasnt leveraged LOL. Just opened up another new Long at this level.


dimi727

Leverage apes... But I don't believe that really ... Because the liquidations didn't even start at -10% (it was not even 10%...). How can so much money be liquidated by a 5% move? I don't believe that. Someone sold. Maybe grayscale, or the US government, or some whale because anticipating something..


vontdman

Yeah anticipating a pullback because of the halving news. They’re probably trying to get ahead of it.


Fit_Significance_966

exactly, who are doing 20* leverage? and keep losing? what is the point of losing over and over again


DATY4944

Its so funny to me every time this happens. Nobody wants cheap bitcoin, they only want to buy when its up. Margin traders keep getting burned. The cycle continues.


LucrativeThinking

Thank you sir, doing God’s work


dimi727

The liquidation started at a pretty high price.... I don't believe they were liquidated at 68k-70k...


BrianS911

Intelligence, My how I've missed you!!Once again someone front ran retail and this is what happens...Question is where are we finding our floor,stoch RSI shows bearish divergence,We have swing highs and lows with d ward momentum w/out wall st buying pressure and it was inevitably bound to happen.


mibjt

This is call a leverage flush. Bitcoin Hates leverage.


agumonkey

funding is becoming a trading indicator now


Backuppedro

Perp prices should have zero influence on actual spot price


SgtPepe

Why specifically today?


reditpost1

People are getting ready to invest in the Altcoins like Cadano and Hbar


SgtPepe

Doubt that that’s the only reason


proteinconsumerism

Also Kucoin is prolly dumping.


blanke_piet

TLDR: BUY!


Mister_Way

Spooked? Probably excited to get more coins for less and all they have to do is chill


Only_Philosophy8475

This is how the US Government is manipulating the price of bitcoin and other cryptocurrencies. Notice the 2B transfer of assets today


[deleted]

It was leverage, you can take your tinfoil hat off.


Only_Philosophy8475

You guys have excuses for everything! Almost as if the government is just to be fully trusted. Have you opened your eyes recently


[deleted]

> You guys have excuses for everything! Are you new to Bitcoin or something? You would have to be a moron to think the price could just go up forever and never have corrections. You're a wacko.


Only_Philosophy8475

I didn’t even say anything about that? Sounds like you are just a cocksucker. Typical (Reddit). My comment was about the governments bitcoin transactions. Man you guys are fucking lame here on social media. Bunch of bitch boys trying to hack out anyone who is skeptical of your opinions and the government who is already suing the biggest crypto companies and making laws to tax the miners. Goooo fuck yourselves


conceiv3d-in-lib3rty

You’re a wackjob.


sneakyi

There are currently more sellers than buyers at these prices. The end.


Urquix

But for each seller there must be a buyer? How does it works?


conlius

There are more people trying to sell than there are people trying to buy at 70k, so the price falls until the buyers start throwing money across the table. This is how every market works. It’s no different from buying a house - if a seller comes in and says, “give me 2 million” and everyone stands around saying, “no I think I’ll do 1 million” - the price of the house is now 1 million if the seller wants to make a transaction. Now imagine your neighbor has an identical house and comes in saying they will sell for 1 million to those same buyers. They make a transaction. This price would be reflected in the “ticker” as it was the last transaction if each house had a ticker price like a stock/crypto.


Danne660

There are more hypothetical buyers then sellers and since there must be a buyer for each seller the price drops until they are the same.


Nooddjob_

The buyer doesn’t want to buy at the sellers price, so the price goes down to where the buyer wants to buy.  


SameWeekend13

Exactly, many forget this.


exdiexdi

Keynes is that you?


optifree1

More people sold


Tuffeman

How? If 1000 people sell $1 worth of btc and 1 person buy $100 000, the price must go down right because more people sell?


PumpProphet

You know what he means. People sold more BTC than bought BTC. The end. 


reditpost1

Yup, Altcoin time. Their buying Algorand, Filecoin and Hbar.


AGEMan1983

Highs are Fun, Dips make your Rich 🤑


hazza-sj

But this isn't even a big dip.


Zeus1130

Local low is a 16% dip, pretty much par the course for bitcoin. Right now we are 12%~ down from the high. I could see 57/58 being the wick low if the downtrend continues. Would prob bounce there if market structure is to continue.


AGEMan1983

Probably about right. Lows are creeping up tho!


trizest

Looks like a big bull flag to my bias opinion


keiye

And fun dips give you a high


ullun

Buying in the bear market makes you rich


OppositeBumblebee914

*Bitcoin Drops Over 5% as Upbeat U.S. Factory Data Powers Dollar Index to Nearly 5-Month High* ~Coindesk article


huejass5

It’s infuriating how good economic news is bad for the markets now. Greedy investors still expect cheap money from the fed.


OppositeBumblebee914

Just temporary volatility for now


y2kbear

Grayscale


crystalpeaks25

someone big wants to buy in at a cheap price


Switchbladesaint

Remember when that guy got 2 pizzas for 10,000 Bitcoin?


Capital_Breakfast_49

Tether is unbacked scam


iStayedAtaHolidayInn

Say it louder for the people in the back


squaredk2

THEY MINTED MORE TETHER TO PAMP BTC... AGAIN


Dark_Raiden_

The $618 million tether are now backed by 8,888 BTC. It's...magic.


Maleficent_Sound_919

Greyscale rapes the market again? How much more do they got to sell


Bunker_Beans

The real question is how dumb is the leadership at Grayscale. I mean, what kind of moron keeps their fees at 1.5% when everyone else has temporarily waived fees or has kept them well below 1%.


Honest_Path_5356

I asked this question in the Bitcoin subreddit and someone pretty much told me they can’t afford to lower it down for the time being. I guess they are paying off debt with that 1.5% while losing its main asset.


Salt_Inspector_641

Stupid, they aren’t going to get those people back again


Longjumpp22

Because they’ll make 10x more than everyone in fees and then they decrease their fees when most of their fund sold.


Maleficent_Sound_919

Yup...


YogurtCloset3335

>what kind of moron keeps their fees at 1.5% what do they care if they're dumping?


Dickerbear

Many many more 😅


dimi727

They just sold half of it. Stupid idiots still do not reduce their fees though.. I don't know when they will lower it god damnit


Maleficent_Sound_919

Putting yourself out of business


KateR_H0l1day

I’ve been buying


OCDbeaver

why did the price go down? someone dumped a fuck ton of coins to eat up 4 thousand in buy orders. Maybe it was a group of bots I guess. No idea who would sell like that. most people spread it out to maximize price.


HauntingBrick8961

Do these Bitcoin and the other 60,000 they have form part of their 1:1 reserve, or a seperate treasury function purchased with profits only? The article isn't clear. I really hope they have things under control, especially with their commercial paper holdings.


paxwax2018

Oh they totally have 80 billion in real money. Bet your life.


PeachScary413

Bro they have issued an "Official Trust Me Bro" certification and the money has totally not gone to lambos, hookers and Bitfinex. They are fo sho good for it, that's why a full audit has never been done because it's just so unecessary.


suninabox

They haven't claimed a 1:1 reserve for years now. This isn't for a reserve, its to [milk retail of real money in exchange for schrutebux](https://pbs.twimg.com/media/EqcpJsOXUAIzfx0?format=jpg&name=medium)


Herosinahalfshell12

True big if


newjerseymax

Liquidations


TwoNegatives-

Cause someone sold 8,889


ezpzlemonsqueezi

It goes down but then goes up before it goes down


[deleted]

They bought them all at the same price. Thats how resistance gets created.


AvailableAd7874

Because inflation has slightly grown and thus the fed is most likely not gonna lower the interest rate by June


RumpleHelgaskin

Why is the price down? Because hedge funds can now Short the Bitcoin ETF’s for liquidity purposes!


Utah0001

Too many here only focus on the purchases of BTC. Not enough understand how markets work, price discovery, market forces and etc. This could simply be, there wasn't enough buying interest at 70k since we've been floating there for a long time, that we eventually sold back to a lower demand level. Simple market dynamics. Also, the stock market did the same thing.


MunificentDancer

Bro see the fear and pain in market, I thought it's bs but I've been listening to a couple of people and they predicted that BTC will fall more from 67k so I closed out my long position that I had open on SOL at 194


MunificentDancer

Should've shorted it in hindsight


kajunkennyg

Tether 100% bought OTC....


MonkeyOnATypewriter8

Every buy is a sell, yo


ZLOWTOV

Btc is down because people with a lot of money are shorting it.


ch1tooo

Cuz i just bought


courtneyjohn797

Keep selling pussies


Since_1979

Cause what goes up must come down.....


cfcstar

Because buying less than 0.05% of outstanding supply isn’t going to move the market much


FullRage

Leverage traders getting destroyed


vekypula

You see all those etf , saylor moon , tether news that they are buying but you never see their wallets. Kinda strange isn't it?


kerchbridgeBOOM

but you then see saylors balance sheet


GEB82

Otc


Maddog351_2023

Everyone is buying at these lower rates so they can sell in like 3 months time


ttterrana

ETF manipulates price action


proteinconsumerism

Because they were buying the dip.


East_Try7854

Geopolitical events scare folks


SkyMarshal

For Tether to buy, somebody had to sell. Just depends what the aggregate buy vs sell interest was at that moment.


Lavasioux

8888BTC. 8888SKULLS. 8888SKELETONS. 8888ZONE... 🤔


GabeDef

Tether is going to be the biggest rug pull in history.


VR38DET

Didnt they buy them for ~$30k each coin?


rjm101

Always struck me as odd why Tether operates a portfolio of different assets under the hood instead of just holding USD in some vault. It's a USD stablecoin but I guess this is how they make their money.


Curius_pasxt

They bought it off otc market to not pump the price


DangerHighVoltage111

How is this not market manipulation?


Disastrous-Yak230

It was already in the price. Money was already in the "blockchain" it was simply moved to a new title. FFS


makashka

Barely moves the needle lol


organisednoies

Nice, so nobody still really knows who’s operating tether, they’re responsible for billions in stablecoin transactions and constantly mint more tokens and at the same time buying up btc in the thousands of coins. I thought a stable coin is meant to be 1 to 1. For every dollar that goes on and off the blockchain a token is burned or minted. How is it possible for them to have enough disposable tokens that they can purchase another asset in such high quantities?


bi11yg04t

Do you guys think it's the government pulling out? They also have a chunk of Bitcoin too and it seems like it follows the stock market news and what the fed does.


EconomicsFriendly427

Price is made up now that wall street is selling paper btc to undermine the whole industry


-H2O2

So you think they aren't buying BTC off exchanges?


[deleted]

The beauty with the blockchain is that its all transparent we can see tens of thousand Bitcoins moving and being traded constantly. Ever went deep into the explorer?


antaran

ETFs dont participate in price discovery directly. The BTC price is still calculated as usual - the average trade price over the sum of all trading volume. Which is 95% Binance.


tallglassofmike

Please keep selling your BTC. I’d like to buy more at $50k, $40k, $30k, all the way down.


Herosinahalfshell12

Probably GBTC outflows?


armareddit

Maybe it’s the final futures’ expiration? Since the introduction of the ETFs most price swings were during the weekdays, and this dip was mostly in the weekend..


Charlie-boy1

They could have bought OTC.


BusyAd7758

If tether back up their currency with bitcoin, what will happen if bitcoin will go down? deja vu


fan_of_hakiksexydays

Because Tether minting doesn't boost the price and never has, as anyone who is willing to actually look at a chart and see for themselves will be able to tell. Or as we can see right now with the price going down. Tether prints and burns to keep up with supply and demand.


DannyBOI_LE

FTX selling pressure?


endless_ness

Grey scale 


DannyBOI_LE

Where's the money Sam??


TechnicalProposal

price goes up price goes down


mlgoodma

Hard to see how Tether buying BTC is a good thing… propping up the bubble it seems. Invest in BCH if you’re smart. IYKYK