Bitcoin has more than enough fans. The cryptocurrency was most recently backed by billionaire and investor Paul Tudor Jones. He believes that allocating a small part of the investment portfolio to BTC is necessary at least because of the limited supply of the cryptocurrency.

Tudor Jones himself already has a successful track record with digital assets. In particular, he was able to almost double his own investment in BTC in 2017. Read more about the story in a separate piece.

When will Bitcoin start rising in value?

RHODL Ratio is a method of controlling BTC price behaviour based on the realised supply price of coins. In this case, the realised price is the BTC value at which coins last moved. The indicator compares the relative age of coins that moved a week ago to those that moved one or two years ago.

That is, RHODL Ratio allows us to determine how long-term and short-term Bitcoin investor activity relates to each other. Already from that we can conclude exactly why most market players are buying BTC at the moment – for speculation or for long-term investment. The accumulation zone, shown in green on the chart, shows the market state in which long-term holders of BTC are most active. At the same time, the red zone shows the highest activity of short-term traders.


As market cycles show, long-term investors are more likely to buy cryptocurrencies in time - that is, not far from their local lows. Accordingly, they have money to open positions even after a global prolonged market crash.

At the same time, the category of short-term crypto investors is often represented by newcomers who missed out on "good" prices because they became disillusioned with the market amid its collapse. At the same time, they are forced back into crypto investing by rising rates. Moreover, this category of players often does not have time to sell assets in time, which puts them in deficit again.
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At the end of 2022, the indicator dipped to the green accumulation zone of coins, which essentially hinted at a profitable period to buy. Swift then suggested in an interview with Cointelegraph that there was a period of “maximum opportunity” in crypto. As can be seen in hindsight, the analyst was right – in the first quarter of 2023 alone, Bitcoin’s price rose 69 per cent.

Swift warns that traders should not worry about short-term Bitcoin corrections. He says the RHODL Ratio has rebounded from the green accumulation zone and gone up. That is, the global BTC trend has already reversed, and now the cryptocurrency is growing on a larger scale.

That said, it is important to understand that a bull run does not happen in one week. There is usually an accumulation phase before the bull run, during which investors actively buy cryptocurrencies and tokens in anticipation of new market growth. Therefore, the bull run will have to wait in any case, even if the charts show a trend reversal.

Another reason for the bull run will be the decision by Tether, which is issuing the most popular USDT stackcoin. Now, the issuer’s representatives said that Tether plans to spend a portion of its revenue each month to acquire Bitcoin. By doing so, the company expects to diversify its own balance sheet with a gradual reduction of reliance on assets that are too sensitive to new challenges in the U.S. economy and linked to the U.S. government debt in general.

More specifically, Tether intends to "regularly allocate up to 15 per cent of its net realised operating income to Bitcoin purchases". As a reminder, the company's quarterly financial report was released a week ago, in which the stabelcoin issuer reported a net profit of $1.5 billion. Accordingly, there should be enough money to buy BTCs.

Tether will keep its bitcoins under its own control. At the end of the first quarter of 2023, the company has $1.5 billion in BTC, or about 2 per cent of its total reserves. 85 per cent of Tether’s balance sheet consists of cash, cash equivalents and other short-term deposits, mostly represented by treasury bills from the US government.

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USDT issuer representatives said Bitcoin was the obvious choice as the most popular cryptocurrency has proven itself as a long-term means of capital accumulation. Tether believes that the main argument for this decision is the tremendous growth in Bitcoin’s value over the past decade and its resilience to crises in traditional finance.

So what does this mean for the Bitcoin price? Every month there will be a major buyer of BTC in the market, which means a portion of the coin’s available supply will automatically go to Tether. This strategy should be a powerful boost to Bitcoin’s growth in the coming months. At least when MicroStrategy started buying bitcoins in August 2020, the major cryptocurrency already reached a new all-time high almost 14 months later.

Some members of the cryptocurrency community got tense over Tether's decision. They recalled cryptocurrency issuer Terra LUNA and "stabelcoin" UST, which also bought BTC as reserves. However, these situations are not similar to each other. Still, Tether is using its profits for transactions, well bitcoins in this case will be an investment rather than part of the giant's reserves.


We believe that what is happening with just one chart cannot unequivocally mean that a bull run is coming for Bitcoin and other digital assets. However, it would indeed make more sense for the cryptocurrency market now to enter a new phase of growth rather than decline. After all, the industry has been in decline since late 2021, when BTC hit a record $69,000. Well, 1.5-2 years of collapse is usually enough to successfully overcome the worst events in the niche. Perhaps that will happen this time as well.


Will a similar situation happen again? Stay tuned to our Future Millionaires cryptochat. There we will talk about other important topics from the world of blockchain and decentralised assets.