Finance

Tether’s Bitcoin Bet: Why the Stablecoin Giant Is Doubling Down Amid Market Volatility

Tether bought $97M Bitcoin, growing holdings amidst market downturn, now holding 87,296 BTC.

byAndres Castro

November 7, 2025, 8:51 AM

A Tether (USDT) stablecoin rests on a scattered pile of US one hundred dollar bills.

A physical Tether (USDT) coin sits on a large amount of scattered hundred dollar US bills. By MDL.

Executive Summary

Tether acquired an additional 961 Bitcoin, increasing its total holdings to 87,296 BTC, valued at $8.84 billion, making it the sixth-largest Bitcoin wallet globally.

Analysts interpret Tether’s purchase as “conviction buying during liquidity stress” and a “vote of confidence in Bitcoin’s long-term fundamentals” amidst a market downturn.

Bitcoin is currently trading around $100,253, recovering from a recent liquidation, with experts advising long-term accumulation during dips and anticipating a “reaccumulation phase.”

The Story So Far

Tether, the issuer of the world’s largest stablecoin USDT, has a stated strategy of allocating 15% of its net operating profits to Bitcoin, reflecting its long-term conviction in the digital asset. This consistent accumulation, often during market downturns, is viewed by analysts as “institutional conviction buying” that signals confidence in Bitcoin’s long-term fundamentals and a potential “reaccumulation phase” for the market despite recent volatility.

Why This Matters

Tether’s consistent and significant accumulation of Bitcoin, now positioning it as one of the largest BTC holders, signals strong institutional conviction in the cryptocurrency’s long-term fundamentals, even amidst market downturns. This “conviction buying” during periods of “liquidity stress” could reinforce Bitcoin’s legitimacy as a hard asset, potentially influencing broader market sentiment and providing a stabilizing force that encourages a “reaccumulation phase” rather than a prolonged bear market.

Who Thinks What?

Tether demonstrates a long-term conviction in Bitcoin, strategically allocating 15% of its net operating profits to accumulate the digital asset, particularly during market downturns.

Market analysts like Enmanuel Cardozo and Rachel Lin interpret Tether’s acquisitions as “institutional conviction buying” during liquidity stress, signaling a “vote of confidence in Bitcoin’s long-term fundamentals” and indicating that the market may be entering a “reaccumulation phase.”

Prediction markets, such as Myriad, recently shifted to a bearish sentiment, with a slight majority expecting Bitcoin’s next move to be towards $85,000 rather than $115,000.

Tether, the issuer of the world’s largest stablecoin USDT, recently acquired an additional 961 Bitcoin (BTC) valued at $97.18 million from the crypto exchange Bitfinex. This move, part of its strategy to allocate 15% of net operating profits to Bitcoin, underscores the company’s long-term conviction in the digital asset amidst a recent market downturn.

Tether’s Growing Bitcoin Reserves

The stablecoin issuer’s Bitcoin portfolio now stands at 87,296 BTC, with an approximate value of $8.84 billion. This considerable holding positions Tether as the sixth-largest Bitcoin wallet globally. The company’s average purchase price for Bitcoin is estimated at $49,121, resulting in an unrealized profit of about $4.55 billion on its current stash.

According to EmberCN, a Chinese on-chain analysis account, Tether’s historical practice involves withdrawing quarterly Bitcoin purchases from Bitfinex on the last day of each quarter. The recent transaction aligns with this ongoing accumulation strategy.

Expert Perspectives on Market Dynamics

Analysts offer varied interpretations of Tether’s latest purchase. Gleb Kurovskiy, Chief Digital Officer at Luminary Bank, suggested that the acquisition might reflect portfolio rebalancing rather than solely strategic accumulation, noting Tether’s increased exposure to precious metals and Bitcoin’s recent price dip.

Enmanuel Cardozo, a market analyst at Brickken, characterized Tether’s $97 million Bitcoin purchase as an “institutional pattern of conviction buying during liquidity stress.” He emphasized that “smart money rarely tries to time tops or bottoms; it accumulates when leverage unwinds and fear dominates.” Rachel Lin, CEO and Co-Founder of SynFutures, reinforced this, stating that Tether’s diversification towards hard assets like Bitcoin signals a “vote of confidence in Bitcoin’s long-term fundamentals.”

Bitcoin’s Current State and Outlook

Bitcoin is currently trading around $100,253, reflecting a 2.6% decline over the past 24 hours and still recovering from a significant liquidation event in October. Despite the volatility, experts advise retail investors to adopt a disciplined approach, viewing market dips as “accumulation windows” for those who believe in Bitcoin’s fundamentals. Strategies like dollar-cost averaging and focusing on the long game are recommended.

Sentiment on prediction markets, such as Myriad, recently shifted bearish, with a slight majority expecting Bitcoin’s next move to be towards $85,000 rather than $115,000. Altcoin sentiment largely remains bearish.

Path to Recovery

Bitcoin’s recovery trajectory is closely linked to broader macro conditions, market liquidity, and the stabilization of exchange-traded fund inflows. Cardozo anticipates the market is entering a “reaccumulation phase rather than a new bear cycle.” Lin echoed this tempered optimism, highlighting on-chain data that shows a majority of Bitcoin remaining unmoved in wallets for months, indicating underlying conviction among holders.