Tether to Allocate 10–15% to Gold and 10% to Bitcoin as Gold Hits ~$5,280/oz
Tether CEO Paolo Ardoino said the company will target roughly 10% of its investment portfolio in Bitcoin and 10–15% in physical gold as part of a longer-term diversification amid rising market uncertainty. Tether has been steadily buying bullion and reportedly holds well over 100 tonnes of gold—using it to back its gold token XAUT (and linked products) and storing bullion in Swiss vaults with retained ownership. Ardoino did not disclose a full breakdown of reserves or exact gold backing for USDT. The move comes as gold rallies to approximately $5,200–$5,300/oz (all‑time highs), driven by geopolitical risk, dollar weakness and safe‑haven demand. Technical indicators cited by market observers show bullish momentum for gold in the short term, though high RSI readings warn of potential pullbacks. For traders, Tether’s allocation signals institutional demand for hard assets alongside continued strategic exposure to Bitcoin; expect possible flows into XAUT/USDT and increased attention on BTC liquidity as Tether rebalances reserves.
Bullish
Tether’s announced target to hold ~10% in Bitcoin and 10–15% in physical gold is net bullish for BTC prices. The direct mechanism: if Tether reallocates reserves into Bitcoin or signals ongoing demand for crypto reserve assets, that increases buy-side pressure or at least reduces potential sell-side reserve diversification away from BTC. Additionally, Tether’s accumulation of gold and issuance of gold-backed products (XAUT) suggests capital flows into tokenized reserve assets rather than fiat, supporting broader stablecoin demand and market liquidity. Short-term effects: modest bullish — traders may interpret the news as increased institutional support for Bitcoin and could bid BTC higher, though any immediate impact is constrained by existing BTC supply/liquidity and market sentiment. Medium-to-long term: supportive — a formal reserve policy that includes BTC as a meaningful allocation adds credibility and potential sustained demand. Offsetting risks: Tether did not disclose precise reserve movements or timing; heavy gold purchases could divert liquidity away from crypto in the very short term, and general macro volatility or a high RSI on gold/BTC could trigger rotations. Overall, expected price bias for BTC is bullish but likely gradual rather than a sudden spike.