Cryptocurrency exchanges now have more stable coins on their books than ever before, a new sign that investors are waiting to buy bitcoin (BTC) and altcoins.
Data from the analysis platform CryptoQuant shows that the total holdings of stablecoin on stock exchanges peaked at 27 billion for the first time this week.
Users switch stack coins to accounts
After reaching an earlier peak in late December, stablecoin reserves fell in early 2022 as the Bitcoin / USD and altcoin markets fell to several months’ lowest level.
However, the trend has changed in recent weeks: From February 9, users of the stock exchange sent more to their accounts than ever before.
Thus, the liquid capital for the potential placement of cryptocurrencies on stock exchanges has never been so large.
Graph of stable foreign exchange reserves for the stock exchange. Source: CryptoQuant
CryptoQuant data analyzes a total of 43 trading platforms for retail and derivatives.
As for the BTC reserves on the company’s 21 monitoring exchanges, there is a trend of constant withdrawals – even after the spot price of bitcoin has risen by almost 50% since the third week in January.
As of February 9, there were 2.361 million bitcoins available on stock exchanges.
Bitcoin exchange reserves vs. BTC / USD Chart. Source: CryptoQuant
Supply Shock Model leaves $ 5000 profit open for Bitcoin
As demand for bitcoin continues to rise thanks to the recent increase, well-known analyst Willy Wu claims that the current market value of bitcoin is $ 50,000.
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Referring to the supply shock rating scale, Wu showed that although it fell in January, it was still above the spot price even after recent gains.
An offer shock determines the market price of Bitcoin when the offer is at the same level at a given time.
«In market conditions where the supply shock is within recent historical levels, an underlying price can be modeled. We only look at previous periods where the market had a similar supply shock, and then find a set of prices that the market has recently set, “Wu explained in” Introduction to the tool “last year.