Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines
Stablecoin inflows into the exchanges are declining as investors turn pessimistic on Bitcoin, but an increase in USDC coinage could be an impending regulatory signal.
The growth in market capitalization and the circulating supply of stablecoins is one of the best indicators for determining the mood of market participants in times of price fluctuations.
Tracking major tether (USDT) government bonds is a popular tactic used by analysts and traders to position the upside potential of Bitcoin and Altcoin. It was previously an alpha source
good for risk takers.
Alpha (α) is a term used in investing to describe the ability of an investment strategy to beat the market, or “advantage”. Alpha is also often referred to as “excess return” or “extraordinary return”. Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines Circulating USDT supply
|
Source: CryptoQuant
If one looks at the foreign exchange inflows and reserves of individual stablecoins, one finds that the amount of USDC deposited on the exchanges increases while the USDT decreases, which leads to a stability of the entire stablecoin reserves on the exchanges. Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines Circumferential USDC supply
|
This is significant as USDT pressure has always been the driving force behind market moves, but ongoing regulatory challenges and issues surrounding the assets held in reserve make USDT holdings more difficult as regulators increasingly suppress the wild nature of the crypto market. Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines All stablecoins reserved on exchanges
|
Source: CryptoQuant
There was also a spike in stablecoin cash flow transactions on May 29th as stablecoin supply peaked, followed by Bitcoin’s rapid spike to $ 40,000 before a wave of further selling pressures brought the price back below $ 34,000 and take any upward momentum. Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines All stablecoin trading volume goes to exchanges
|
The stablecoin inflows into the exchanges have fallen to their lowest level since October 2020. The cryptocurrency Fear and Greed Index also recorded “extreme fear”, which supports the argument that there is a lack of demand from institutional and private investors. Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines Cryptocurrency Fear and Greed Index
|
Source: alternative.me
Stablecoin inflows are increasing as Bitcoin sinks near $ 30,00030,000 While there was a shortage of stablecoin deposits on the exchanges in June, it could have ended on June 21 when Bitcoin price fell below $ 33,000, which appears to have led these stablecoin holders to consider To buy dips.
#Bitcoin some signs of life, stablecoin flows in.Shh don’t say anything, you’ll scare it off! pic.twitter.com/HrWtizpKJO
– Tempting beef (@tempting_beef)
June 21, 2021
“Some signs of life for Bitcoin, stablecoins are pouring in.
Shh, don’t say anything, I’m afraid it’ll go away! ” Another piece of evidence of USDC activity was Whale Alert, a popular Twitter bot that launched on Jan. 76,672,444#USDC
(76,672,444) minted at USDC Treasury https://t.co/v4OLyuuJE2
June 21, 2021
Usually inflows into stablecoins are viewed as bullish, but CryptoQuant warns that similar stablecoin issues in the past were followed by a long period of sideways or bearish trading. Stablecoin inflows into exchanges are decreasing as traders watch Bitcoin from the sidelines All stablecoin release events
|
Source: CryptoQuant
“After we bottomed out in 2018 and 2019, we are seeing a steady increase in release events. At the height of this bull phase (June 28, 2019) there was a major release event (two major spikes in July-August 2019 were due to the issuance of USDT to ETH). It looks like the same thing is happening. “
This data serves as a warning that not all stablecoin spending are predictors of bitcoin price increases as a number of factors can be responsible for it, such as miners, institutional investors buying USDC for futures orders, or even altcoin and de-fi Protocols prepare for integration USDC pairs.
In the long run, this shift has the potential to benefit the crypto sector, as audited projects like USDC are seen as more legitimate in the eyes of governments and regulators, but the mere comparison of the USDT with a market cap of $ 62.7 billion and its ubiquity on crypto exchanges mean that any attempt to get rid of Tether could result in a loss for the market.
Teacher According to Cointelegraph Follow the Youtube Channel
| Subscribe to telegram channel | Follow the Facebook page