Bitcoin’s quantum-resistant hard fork is inevitable — It’s the only chance to fix node incentives
Opinion by: Dr. Michael Tabone, senior economist for CointelegraphBitcoin (BTC) has long been hailed as unbreakable and untouchable, a digital stronghold against the forces of change. Bitcoin’s bedrock of security is facing its first true test with quantum computing, which should be addressed sooner rather than later. Its cryptographic armor will crack if not addressed, forcing the network to adapt or perish.Bitcoin’s node count is growing, but incentives are still absentBitcoin’s full node network has grown over time, a sign of increasing adoption and a more robust infrastructure, but the core issue remains. The voluntary act of running a node still has no financial incentive. Miners earn rewards for securing the network, yet full node operators get nothing for their role in keeping Bitcoin decentralized.At the same time, a significant portion of these nodes are run by exchanges, custodians and large mining pools. These are centralized entities with financial incentives to maintain control. Suppose Bitcoin’s node network continues to expand without proper incentives. In that case, the risk remains that validation will become increasingly dependent on a few well-funded players rather than a truly distributed base of individual users (see Figure 1).FBitcoin node operation has increased by only 15,605 in 8 years. Source: Bitnodes.io All of this comes as running a Bitcoin node has never been easier. Plug-and-play solutions like Umbrel, Start9, RaspiBlitz, Cubit and Ronin Dojo allow anyone to set up a full node on low-cost hardware with minimal technical knowledge. These tools have lowered the barrier to entry, making node operation more accessible than ever before.Yet adoption remains stagnant. Despite the ease of setup, most Bitcoin users still do not run their own nodes. The reason is simple: There is no financial incentive to do so.Recent: Decentralization is in danger — We can fix itUnlike miners, who earn block subsidies and transaction fees for securing the network, full node operators receive nothing. They validate transactions, enforce consensus rules, and contribute to Bitcoin’s decentralization, yet their efforts go unrewarded. As a result, node operation remains an ideological commitment rather than an economically viable activity.If Bitcoin must be forked, we must use it to strengthen decentralizationCritics of the proposal argue that Bitcoin’s monetary policy should remain untouched. Others warn that introducing full node incentives could lead to Sybil attacks, where bad actors spin up thousands of fake nodes to exploit rewards. These concerns are valid — but they ignore the larger reality.Bitcoin is on the path toward a forced consensus change. The honest debate is not whether Bitcoin should change but whether we will use this moment to strengthen it. If full Bitcoin node incentives are implemented correctly, they could drive a surge in node adoption, strengthening the network’s censorship resistance and reinforcing its decentralization. This would reduce dependence on large mining pools and exchanges for validation, spreading control more evenly among individual participants. Bitcoiners will have to continue pushing to keep Bitcoin resilient against corporate influence in a post-quantum world where security and decentralization will matter more than ever in the years ahead.Poorly designed incentives could introduce risks, particularly Sybil attacks, where bad actors spin up thousands of fake nodes to exploit rewards. These challenges can be solved with the right Sybil resistance mechanisms in place. Ignoring them entirely would be far riskier than addressing them head-on.Source: Michael TaboneBitcoin’s future depends on this momentBitcoin’s greatest strength is its ability to remain decentralized and censorship-resistant. But that strength is not automatic; it requires an infrastructure that encourages broad participation.The quantum-resistant hard fork will be a once-in-a-generation event. We may not get another chance if we fail to use it to fix Bitcoin’s broken incentive structure. Bitcoin’s future depends on getting this moment right.This conversation should continue, but you should have some skin in the game and run a node yourself first. Opinion by: Dr. Michael Tabone, senior economist for Cointelegraph.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Multiple altcoins crash on April Fools’ day, crypto market holds steady
A number of altcoins and memecoins saw a sharp sell-off on April Fools’ Day, April 1, with some tokens, including Act I The AI Prophecy, dropping nearly 60% in minutes.Act I The AI Prophecy (ACT), a token associated with the eponymous project focused on artificial intelligence, plunged 58% from $0.19 to $0.08 in less than an hour on April 1, with its market cap shedding $96 million, according to data from CoinMarketCap.The sharp drop of ACT came along with notable red action in the altcoin market, with memecoins like sudeng (HIPPO), CZ’S Dog (BROCCOLI), Kishu Inu (KISHU), DeXe (DEXE), dForce (DF) and more seeing significant price declines.Cryptocurrency market at a glance. Source: Coin360The broader crypto market hasn’t reacted negatively to panic in altcoin markets, with major cryptocurrencies like Bitcoin (BTC) remaining green at the time of writing.Act I “fully aware of the situation” The massive drop in the ACT token has not gone unnoticed on social media, with Act I taking to X to assure its community that the project is fully aware of the current situation.“Our team is actively investigating and working collaboratively with all relevant parties to address this matter,” Act I wrote, adding that it also started developing a “response plan” with its trusted partners.Source: Act I The AI ProphecySome crypto commentators linked the sudden price movement to a margin update by Binance.Binance’s leverage update triggers a $3.8 million whale liquidationAccording to data from the blockchain analytics tool Lookonchain, Binance’s update of leverage and margin tiers on tokens like ACT on April 1 has triggered some massive liquidations among whales.“Binance updated leverage and margin tiers on tokens like ACT — and a whale got liquidated for $3.79M at $0.1877,” Lookonchain said in an X post.Source: LookonchainAccording to a blog post by Binance, its derivatives platform, Binance Futures, updated to leverage and margin tiers for pairs such as ACT versus Tether USDt (USDT) at 10:30 UTC.Related: Listing an altcoin traps exchanges on ‘forever hamster wheel’ — River CEOThe update affected existing positions opened before the update, potentially leading to some position expirations, Binance noted.Speculation over Wintermute sellingThe altcoin bleeding came amid community speculation surrounding selling by the global algorithmic trading firm Wintermute, which reportedly liquidated multiple altcoin positions on April 1.Some market observers even suggested that the selling was due to a hack, while many expressed confusion over possible reasons for the selling’s root cause.“MMs don’t just nuke their own books for fun. Either it’s a hack, insolvency, or someone is getting margin called hard,” DEFI Kadic commented.Some also speculated about Wintermute interacting with the USD1 stablecoin by Donald Trump-linked World Liberty Financial.Source: Daniele (Degen Arc)“That being a major deal for them, they are derisking all assets that might be non-compliant or non-matching the new brand direction they are taking of an institutional player,” the X user claimed.Wintermute co-founder and CEO Evgeny Gaevoy denied the company’s involvement in the altcoin massacre on April 1 in a social media exchange with X user ilikeblocks.“Not us [for what it’s worth], but also curious about that post mortem,” Gaevoy wrote.Source: ilikeblocks and Wintermute co-founder and CEO Evgeny Gaevoy (wishfulcynic)Ilikeblocks later posted to express regret for their initial allegation about Wintermute.“They’re making markets better for all of us and in comparison to their competition they’re really not that shady,” another user added.Cointelegraph approached Wintermute for comment regarding the market action but did not receive a response by the time of publication.Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
Hacker transfers $70M out of payment platform UPCX
Update April 1, 1:42 pm UTC: This article has been updated to add comments from Cyvers co-founder and chief technology officer Meir Dolev.An unauthorized party withdrew about $70 million in digital assets from open-source payment platform UPCX, according to a security alert issued on April 1.The blockchain security firm Cyvers flagged suspicious activity involving 18.4 million UPC tokens, estimating the value of the compromised funds at $70 million.Cyvers said someone accessed a UPCX address and upgraded its ProxyAdmin contract. The attacker then executed a function that allows admins to withdraw, leading to fund transfers from three different management accounts. At the time of writing, the stolen tokens had not been swapped for other crypto assets.Cointelegraph contacted UPCX for comment but did not receive an immediate response. UPC price dips by 7% amid unauthorized transferUPCX acknowledged it had detected “unauthorized activity” involving its management accounts. The team suspended deposits and withdrawals for UPCX in response to the incident. It said user assets are unaffected by the issue and it is actively investigating the matter. UPC’s token price dropped amid news of the incident. According to CoinGecko, UPC’s token prices dropped 7%, from a high of $4.06 to a low of $3.77 during the incident. UPCX 24-hour price chart. Source: CoinGeckoRelated: Hacker steals $8.4M from RWA restaking protocol ZothUPC hack mirrors previous attack patternsIn a statement, Cyvers co-founder and chief technology officer Meir Dolev told Cointelegraph that while the root cause of the attack remained under investigation, these types of incidents often stem from compromised credentials or flawed access control mechanisms. Dolev told Cointelegraph that both of these vulnerabilities have been the predominant cause of Web3 losses in 2024. The executive said the same causes were responsible for over 80% of the stolen funds during the year. The cybersecurity executive also said the attack pattern was similar to previous exploits. Dolev told Cointelegraph: “This incident mirrors attack patterns we’ve documented in prior exploits, where access to critical administrative roles enabled malicious upgrades and fund drainage.”The executive added that the hack underscored an urgent need to enhance security around wallet permissions, multisignature implementations and runtime transaction validation. The $70 million stolen in the incident would more than double the amount lost in the previous month. In March, crypto stolen from hacks only reached $33 million. Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
Coinbase sees worst quarter since FTX collapse amid industry bloodbath
Publicly traded US-based crypto exchange Coinbase saw its worst quarter since the collapse of crypto exchange FTX in 2022.Coinbase shares started 2025 trading at just over $257 on Jan. 2 and ended the quarter at a little over $172 on March 31, a dip of 33%, according to market data.This makes the first quarter of 2025 the worst for Coinbase’s stock performance since the collapse of FTX in November 2022. In Q4 of that year, its share price went from nearly $66 on Oct. 3 to $35.4 on Dec. 30, a loss of 46.4%.Coinbase shares year-to-date price chart. Source: Google FinanceCoinbase has gained a significant foothold in the crypto market. Its prevalence is substantial enough that some industry experts recently told Cointelegraph its emergence as the Ethereum network’s largest node operator raises concerns about network centralization.Related: South Carolina dismisses its staking lawsuit against Coinbase, joining VermontCoinbase is expected to release its 2025 financials in early May. The firm’s recent shareholder letter shows that the company has generated about $750 million in transaction revenue through Feb. 11 and expects subscription revenue of $685 million to $765 million. While Coinbase has not yet released its Q1 profit figures, MarketBeat analysis estimates them to be around $1.87 billion.A large-scale crypto downturnMost publicly traded crypto companies reported similar results in the first quarter of 2025. Major crypto mining firm Marathon Digital Holdings started Q1 at nearly $17.50 and closed it at $11.00, a loss of over 37%.Competing crypto mining firm Riot Platforms opened Q1 2025 at just under $10.50 and closed it at $7.12, a loss of over 32%. Bitfarms, an energy infrastructure and crypto mining firm, opened the year at $1.56 and closed the first quarter at $0.7882, losing nearly half its value.Related: Riot appoints adviser with experience pivoting BTC mining assets to AIDatacenter and crypto mining firm Hut 8 started the year at $21.10 and ended the quarter at $11.62, resulting in a loss of nearly 45%. The firm continues painting red candles at the time of writing despite its recent partnership with US President Donald Trump’s sons to launch American Bitcoin, aiming to build the world’s biggest Bitcoin mining operation with strategic reserves.The list continues. Datacenter and mining firm Hive Digital Technologies saw its stock go from $2.97 to $1.45 in Q1, losing more than half its price. Lastly, mining hardware producer Canaan Creative started the quarter at $2.11 and ended at $0.8778 for a loss of nearly 58.4%.Geopolitics plays a roleThe broader stock market, not just the crypto industry, has also taken a significant hit widely attributed to recent geopolitical shifts. United States stock market index S&P 500 opened the quarter at $5,890 and closed at $5,610 — losing over 4.75%.Market participants feel uncertain as US President Donald Trump continues waging a trade war on multiple fronts. This week, reports suggest that concerns over a global trade war continue to pressure traditional and cryptocurrency markets as investors brace for a potential US tariff announcement on April 2.Founder of Obchakevich Research, Alex Obchakevich, told Cointelegraph: “Trump’s tariffs are weighing heavily on the market, making it as unpredictable as possible.” He pointed out that Strategy (formerly MicroStrategy) is holding up surprisingly well, with its price losing just under 3.95% as it went from $300.11 down to $288.27 during Q1 2025. He said:“Its stock has held up thanks to a bet on Bitcoin and 400% growth in 2024.”Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Bitcoin mining using coal energy down 43% since 2011 — Report
The use of hydrocarbon fuels in Bitcoin mining has seen a sharp decline over the past 13 years, with the use of coal energy dropping significantly. The share of coal energy use in Bitcoin (BTC) mining has dropped from 63% in 2011 to 20% in 2024, according to a new report released by the industry organization MiCA Crypto Alliance in collaboration with the risk metrics data platform Nodiens.In parallel, the share of renewable energy used in Bitcoin mining has steadily increased, growing at an average rate of 5.8% per year.Bitcoin absolute energy consumption trends and share of renewable and coal energy. Source: MiCA Crypto AllianceThe data reflects a steady shift of Bitcoin mining to cleaner and more sustainable energy solutions, with the study forecasting further decarbonization and mitigation of BTC’s environmental footprint in the coming years.Global coal energy use surged to new highs in 2024While Bitcoin mining’s coal energy consumption reportedly has been dropping at an average annual 8%, global coal consumption has been rising.According to the International Energy Agency (IEA), a Paris-based intergovernmental policy organization, global coal use surged to a new record in 2024, estimated at 8.8 billion tons.Global coal consumption from 2000 to 2026. Source: IEAAccording to the IEA, global demand for coal energy is set to stay close to record levels through 2027 as emerging economies like India, Indonesia and Vietnam are expected to see increased coal consumption in the coming years.Five scenarios for Bitcoin’s energy path to 2030The report outlines five future scenarios for Bitcoin’s carbon footprint, ranging from a bearish $10,000 BTC price to an ultra-bullish $1 million scenario.The study specifically included five BTC price scenarios, with $10,000 considered as a low price scenario, a base price scenario at $110,000, a medium price scenario at $250,000, a high price scenario at $500,000 and a “very bullish” price scenario at $1 million per BTC.Peak annual carbon footprint estimations for Bitcoin price scenarios and IEA’s energy transition scenarios. Source: MiCA Crypto AllianceIn a medium-price scenario, renewable energy is estimated to constitute between 59.3% and 74.3% of Bitcoin’s total electricity usage, depending on the policy scenario, excluding nuclear energy use, the report stated.Related: Crusoe to sell Bitcoin mining business to NYDIG to focus on AIThe report also mentioned an expected peak in Bitcoin mining energy consumption around 2030, echoing a similar forecast in a study by the digital asset platform NYDIG released in September 2021.According to NYDIG’s estimations, even in a high-price scenario, Bitcoin’s electricity consumption will peak at 11 times its 2020 level, accounting for 0.4% of global primary energy consumption and 2% of global electricity generation.Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
Former Blade of God X exec claims game ‘abandoned’ Web3
A former executive of the Web3 game Blade of God X (BOGX) accused the project of abandoning its blockchain-based roadmap after raising funds through the crypto space.On April 1, BOGX’s former chief marketing officer Amber Bella claimed in an X post that despite being funded by Web3 sources, the game “completely abandoned” its Web3 goals and the team working on its Web3 features. “Web3 was completely abandoned, and my Web3 team’s salaries went from delayed payments to no payments at all,” Bella claimed.The former game executive also said that instead of compensating users and repaying funds to non-fungible token (NFT) buyers, the game’s founder, Tnise Liu Yang, decided to block her from all personal communication channels.Related: Kalshi sues Nevada and New Jersey gaming regulatorsFormer BOGX exec says founder avoided refund conversation In the X thread, Bella claimed she attempted to convince Yang to properly liquidate the game’s Web3 assets, but the BOGX founder blocked all communications. Bella wrote: “When I requested that Tnise refund all sold NFTs and properly address the Web3 community, including returning the in-game purchases made by Web3 users during the third test, I discovered I had been blocked from all personal communication channels without any advance notice.”Bella said this happened when she proposed “settling the Web3 side” responsibly if they were to shift the game into a fully Web2 project. In addition, the former exec accused the game’s Web2 team of claiming prizes allocated for players. Bella said that while the Web3 team was working to improve player benefits, they discovered that the Web2 team was using their own accounts to complete and claim cash prizes that should’ve gone to players. “They concealed this from the Web3 team entirely and initially denied it when confronted. Only when we presented evidence showing that the accounts were linked to their own wallets did they finally remove these accounts,” Bella wrote. Cointelegraph reached out to Blade of God X for comments but did not receive a response by publication. BOGX is a game action role-playing game (RPG) developed by Void Labs. On May 11, 2024, Web3 investment fund OKX Ventures announced its investment in the game. In a now-deleted press release, OKX Ventures wrote that the game “merges advanced AI agents with blockchain technology.” Magazine: Classic Sega, Atari and Nintendo games get crypto makeovers: Web3 Gamer
Smart money concepts in crypto trading: How to track and profit
Key takeawaysSmart money consists of institutional investors with advanced tools and knowledge that can influence crypto market trends.Key concepts like order blocks, liquidity zones and fair value gaps can help traders align with smart money strategies.Real-time tracking tools such as Glassnode, Nansen and CoinGecko allow traders to follow smart money’s moves and capitalize on them.Following the movements of smart money is akin to navigating the open sea, using its wake to position yourself for success in the crypto market.Smart money refers to the money being invested by individuals or organizations that know the markets inside and out. We’re talking about institutional investors, hedge funds and well-seasoned traders. These are the big players who have access to more information and tools than most of us, and they use that knowledge to make strategic decisions.In the crypto world, “smart money” is especially powerful because the market is still growing and changing quickly. These investors have a massive impact on the market. Their moves can shake things up, push prices up or down and even shift the way people feel about a particular coin or token.For example, when major players like BlackRock launch a Bitcoin exchange-traded fund (ETF), it can send waves through the market, influencing Bitcoin’s (BTC) price and the broader market. How do institutional investors influence crypto market trends?Institutional investors have substantial financial muscle, and when they enter the crypto market, they can make a big impact in several ways:Liquidity and stability: These investors bring in large amounts of capital, which makes it easier to buy and sell without dramatically affecting prices. This helps stabilize the market and makes it more attractive for other investors to get involved. When more money is flowing in and out smoothly, it creates a healthier, more balanced market. Price movements and volatility: When these big players make large investments (or sell off their holdings), it can cause prices to move quickly, either up or down. While this can create volatility, it also opens the door for traders to take advantage of those price swings.Regulation and legitimacy: As institutional investors get involved, they push for clearer regulations, which helps bring more legitimacy to the crypto space. For instance, the approval of Bitcoin ETFs has given institutional investors a regulated way to invest in Bitcoin, and that’s made the market more credible overall.In short, smart money is invested by experienced, informed players who make strategic moves, while ordinary money is often invested by individuals without deep market knowledge or insight.Smart money concepts (SMC) in crypto tradingSMC is a trading strategy focused on analyzing and capitalizing on the movements of smart money. The key elements of SMC include order blocks, liquidity zones and fair value gaps. Let’s break these down simply.Order blocks (OB)Order blocks are areas on the chart where big investors (the smart money) are making large buy or sell orders. These areas usually act like walls of support or resistance, meaning they are strong levels where prices tend to bounce back. You can spot order blocks by looking for clusters of high-volume candlesticks at certain price levels. These are often periods of sideways price movement followed by a sharp move up or down. When the price comes back to these areas, expect it to react in some way, as that’s where the smart money has been. Liquidity zonesLiquidity zones are collections of buy and sell orders at certain price points. These are like gathering spots where a lot of market participants are placing their orders, creating areas where price reversals or breakouts are likely to happen. Smart money investors love these zones because they can place large trades without drastically moving the market in one direction or the other. By understanding where liquidity zones are, you can predict where the market might go next.Fair value gaps (FVG)A fair value gap occurs when there’s a big imbalance between the buy and sell orders for an asset, creating a gap on the chart. This usually happens when the price moves quickly without much trading in between, and you can spot these gaps as spaces between candlesticks. These gaps act like magnets for the price. Markets often return to fill these gaps before continuing their trend. When you spot a gap, it could be a great opportunity to enter the market, knowing the price might come back to fill it before resuming its movement.How to track smart money moves in real timeThere are several tools that help decode blockchain data and spot smart money maneuvers instantly.1. GlassnodeCategory: On-chain analyticsWebsite: glassnode.comGlassnode gives you visibility into blockchain data unavailable through price charts alone. It shows how crypto flows between wallets, exchanges, and large holders, which is perfect for tracking institutional activity.Key features for smart money tracking:Exchange inflows/outflows: Watch for sudden spikes in BTC or Ether (ETH) moving in/out of exchanges, often a sign that big players are preparing to buy or sell.Whale metrics: Metrics like “Number of addresses holding 10K+ BTC” help identify when whales are accumulating or distributing.Realized cap and dormancy: This tells you whether older coins are moving, often a clue that long-term holders (smart money) are repositioning.Top tip! If you notice a sharp drop in exchange reserves for ETH on Glassnode, that could signal whales are withdrawing ETH to cold storage (a bullish sign). Combine this with price action, and you may have a high-confidence entry point.2. Nansen Category: Wallet and whale tracking Website: nansen.aiKey features for smart money tracking:Smart money dashboard: A curated list of wallets considered “smart” based on their historical returns and behavior.Token god mode: See what tokens smart money is buying or selling and how holdings have changed over time.Real-time alerts: Set alerts for transactions by specific wallets or token movements.Top tip! Suppose that you see that multiple smart money wallets started buying a low-cap altcoin over the past 24 hours. That might be a sign they know something before the broader market does. You can monitor for a breakout and act accordingly.3. CoinGecko Category: Market data and volume analysis Website: coingecko.comKey features for smart money tracking:Volume spikes: Watch for sudden increases in 24-hour volume that are not yet reflected in price — often a prelude to a move.Liquidity data: Find coins with deep liquidity where institutions might be operating.Exchange data: Monitor volume by exchange. If one exchange suddenly has massive buy pressure, smart money might be active there.Top tip! Perhaps a small-cap token sees a 5x spike in volume on Binance but hasn’t moved much in price yet. That divergence can indicate accumulation. You could do a deeper dive with onchain tools Nansen or Glassnode to confirm.4. Santiment Category: Market sentiment and onchain analytics Website: santiment.netKey features for smart money tracking:Social volume and sentiment: Gauge hype levels around tokens. Smart money often moves counter to the crowd.Whale transaction count: See how many large transactions (e.g., $100,000+) are happening for a given coin.Development activity: Some smart money tracks developer activity as a proxy for long-term value.Top tip! A token sees decreasing positive sentiment but a spike in whale transactions. That disconnect can signal smart money is accumulating while retail exits, a classic contrarian play.5. ChainalysisCategory: Blockchain forensics and risk detectionWebsite: chainalysis.comChainalysis focuses more on risk detection and compliance, but it can still be useful to track large, high-risk wallet movements and avoid traps or manipulated markets.Key features for smart money tracking:Address labeling: Know whether a wallet belongs to an exchange, scam, hacker group or institutional custodian.Transaction monitoring: Track big inflows/outflows and the origin of funds. Are they from DeFi protocols, over-the-counter (OTC) desks or mixers?Risk scoring: Avoid getting caught in tokens or wallets associated with pump-and-dump schemes or hacks.Top tip! If you see a large amount of ETH being sent from a wallet flagged as a known DeFi VC to an exchange, that could be a sign of upcoming selling pressure. Conversely, tracking inflows to cold wallets from institutions can be a bullish signal.Follow the Man o’ WarThink of crypto trading as the open sea, with smart money as powerful Man o’ War ships, navigating with advanced tools and knowledge. As a retail trader, you may not be in control of these ships, but you can follow their course.Using platforms such as Glassnode, Nansen, CoinGecko, Santiment and Chainalysis, you can track the movements of smart money in real-time. While you might not steer the ship, by observing its wake, you can adjust your course and position yourself for profitable opportunities.You don’t need to command the ship; just follow its lead to find your way to safe, profitable shores.
Tether adds 8,888 Bitcoin in Q1 as holdings exceed $8.4B
Tether, issuer of the USDT stablecoin, acquired 8,888 Bitcoin in the first quarter of 2025, according to onchain data.Onchain transaction data shows that Tether moved its newly acquired Bitcoin (BTC), worth roughly $750 million at the time of writing, from a Bitfinex address to a wallet it controls. Data provided by onchain analytics platform Arkham Intelligence shows that the firm currently holds 100,521 BTC, worth about $8.46 billion.Tether’s Bitcoin balance chart. Source: Arkham IntelligenceThe news follows mid-February reports that Tether could be forced to sell part of its Bitcoin holdings to comply with proposed US regulations. JP Morgan wrote in a report that potential stablecoin regulation could consider a significant portion of the firm’s current reserve as non-compliant:“Under the proposed bills, Tether would have to implicitly replace its non-compliant assets with compliant assets. […] This would imply sales of their non-compliant assets (such as precious metals, Bitcoin, corporate paper, secured loans.”Still, Tether argued against the conclusion of the JP Morgan analyst. A Tether spokesperson criticized the analysts in correspondence sent to Cointelegraph, saying “they understand neither Bitcoin nor Tether” and highlighting that the US stablecoin laws have yet to be finalized.Related: Binance ends Tether USDT trading in Europe to comply with MiCA rulesTether becomes an investment powerhouseTether reported $13 billion of profit in 2024, leading to a significant capital reserve that the firm funneled into large-scale investment ventures. As a result of this explosive growth, the stablecoin issuer became the world’s seventh-largest buyer of US Treasurys, surpassing financially significant countries such as Canada, Taiwan, Mexico, Norway and Hong Kong.At the end of March, Tether invested 10 million euros ($10.8 million) in Italian media company Be Water. In February, the firm acquired a majority stake in Juventus FC, a major Series A football club based in Turin, Italy, and also sought to acquire a majority stake in South American agribusiness Adecoagro.The firm’s influence is already growing as a result of those investments. Rumble, a video platform in which Tether invested $775 million in late 2024, recently announced the launch of its wallet for content creator payments with support for Tether’s USDt.Related: ‘Stablecoin multiverse’ begins: Tether CEO Paolo ArdoinoUSDt keeps growingTether’s USDt is the world’s leading stablecoin and the third digital asset by market cap, according to CoinMarketCap data. At the time of writing, USDt’s total supply stands at just under 148 billion.Ignoring the minor deviations from the US dollar’s value, that supply would place the current market cap at almost $148 billion. Whale Alert data shows that on March 31, Tether minted a billion dollars worth of USDt on the Tron blockchain.USDt minting, burning and Bitcoin price. Source: Whale AlertBitcoin’s price has historically tended upward following upticks in USDt minting and large-scale USDt minting has usually followed significant Bitcoin price increases. David Pakman, managing partner at crypto-native investment firm CoinFund, recently said that the global stablecoin supply could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth.Magazine: Chinese Tether laundromat, Bhutan enjoys recent Bitcoin boost: Asia Express