Nearly half a billion USDT streams were recorded on the major Bitcoin exchanges (BTC) on April 8, according to Glassnode.
Given that the influx, the largest since mid-March, coincided with a slight drawdown of Bitcoin, this indicates that buyers may be waiting to enter after the bitcoin price drops.
Stable deposits on stock exchanges. Source: Glassnode
Cause Bitcoin price to rise widely?
There are two main accounts in the chain that often indicate that a bigger Bitcoin surge is taking shape: BTC outflows and stablecoin flows.
Stable currency flow occurs when traders put their collateral money on exchanges to buy back cryptocurrencies.
Meanwhile, big changes occur in Bitcoin as high net worth investors move their coins from exchanges to self-service wallets, often indicating that they intend to hold out in the long term.
In one hour, more than $ 476 million of stable deposits were viewed on the exchanges. According to Lex Moskovski, Investment Director at Moskovski Capital, this indicates that there is no shortage of capital awaiting Bitcoin’s slide.
Yesterday, within an hour, $ 476 million was deposited on exchanges to buy the flop. Every time we dive in, the liquidity shortage doesn’t seem to be over. ”
Stable coins are growing rapidly
On April 2, Bitfinex’s Paolo Arduino stated that the market value of Tether, the largest coin stack in the global market, had reached $ 42 billion.
Over the next six days, the market cap of USDT added another $ 2 billion, indicating strong momentum.
Since Tether are essentially digital dollars that can be easily converted into Bitcoin and other cryptocurrencies, this trend indicates that the amount of incidental capital in the cryptocurrency market is increasing.
In theory, when there is a lot of extra money in the market, it represents a great firepower to drive new growth in major cryptocurrencies like Bitcoin.
When asked about large USDT deposits, it could also mean that there is a requirement to withdraw instead, in contrast to Moscow’s saying that USDT deposits on exchanges are usually an intent to buy.
It is to explain:
The stablecoins listed on exchanges are traded mostly. Some of them can be used to lend to merchants who are delivered. […] Moreover, she is also optimistic as she emphasizes the need for ambition. ”
Meanwhile, CryptoQuant data shows a similar trend. For example, the multiplier for all exchanges increases stablecoins that share all bitcoin reserves on exchanges with stable currency reserves, again indicating that investors may re-enter the market.