USDC Exchange Reserves Rise As Investors Escape From Bitcoin
30 Juni 2022 - 09:00PM
NEWSBTC
On-chain data shows the USD Coin exchange reserves have gone up
recently, suggesting that investors may be exiting volatile markets
like Bitcoin. USD Coin All Exchanges Reserve Has Been Climbing Up
Recently As pointed out by an analyst in a CryptoQuant post, there
have been signs of selling from Bitcoin investors for moving into
USDC. The USD Coin “all exchanges reserve” is an indicator that
measures the total amount of the stablecoin currently present in
wallets of all exchanges. When the value of this metric goes up, it
means investors are either depositing their USDC to exchanges right
now, or shifting to the stablecoin from other cryptos. Investors
usually move into stablecoins like USD Coin when they want to
escape from the volatility associated with cryptos like Bitcoin. On
the other hand, when the value of the reserve heads down, it
implies the amount of USDC on exchanges is decreasing at the
moment. Related Reading | Extreme Fear Remains: Recapping
What’s Behind The Crypto Market Panic This kind of trend may be
because of investors feeling now is an ideal point for jumping into
volatile markets, or it may simply be due to holders withdrawing to
personal wallets. Now, here is a chart that shows the trend in the
USDC all exchanges reserve over the last few months: Looks like the
value of the indicator has been going up in recent days | Source:
CryptoQuant As you can see in the above graph, the USD Coin all
exchanges reserve has observed some uptrend in the last week. The
chart also shows the trend for USDC inflow to exchanges, which is
another metric that measures the total amount of the stablecoin
moving into centralized exchanges. It seems like the inflows
haven’t been abnormally high recently, but the reserve has still
been experiencing upwards movement. Related Reading | Mining
Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The
Mining Community This could mean that the increase in the reserve
isn’t just due to investors depositing their USDC, but also from
them exchanging cryptos like Bitcoin for the stablecoin. The trend
may suggest that investors are leaving volatile markets for now,
due to the current uncertain market conditions. This recent selling
can prove to be bearish for the values of Bitcoin and other
cryptocurrencies. Bitcoin Price At the time of writing, Bitcoin’s
price floats around $19.1k, down 7% in the last seven days. Over
the past month, the crypto has lost 35% in value. The below chart
shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have declined over the last couple
of days | Source: BTCUSD on TradingView Featured image from
Kanchanara on Unsplash.com, charts from TradingView.com,
CryptoQuant.com
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