On-Chain Data Shows Surge In Stablecoins Supply Pouring Into Bitcoin
25 Oktober 2021 - 9:00PM
NEWSBTC
On-chain data shows a recent rise in the number of stablecoin
addresses sending to exchanges, suggesting an increase in dry
powder supply pumping into Bitcoin. Stablecoins Exchange Inflow
Addresses Count Recently Surges As pointed out by a CryptoQuant
post, the number of stablecoin addresses making inflow transactions
to exchanges saw a sharp rise yesterday. Stablecoins are tokens
that have their values tied to a fiat currency. Since they are
relatively stable (as their name suggests), investors like to use
them for temporarily pulling out of volatile markets like Bitcoin.
The “all stablecoins: all exchanges inflow addresses count” is an
indicator that shows the total number of these fiat token addresses
that are sending their coins to exchange wallets. A spike in the
metric’s value means there is an increase in the supply of
stablecoins for transferring to other cryptos. This could suggest
investors believe now may be a lucrative entrance into volatile
markets, and so they are converting their fiat-tied coins to BTC
and other cryptocurrencies. They may also be looking to withdraw
the coins into fiat. Related Reading | Bitcoin Bullish Signal:
Whales Are Building Their Positions On Derivatives Now, here is a
chart that shows the trend in the indicator’s value over the last
week: The stablecoins inflow addresses count showed a huge spike
yesterday | Source: CryptoQuant As the above graph shows, the
indicator showed a very large value yesterday, implying that a lot
of investors sent their coins to exchanges at that time. The reason
behind the trend could be the recent correction that Bitcoin
suffered after making its new ATH. Investors may be bullish on the
future price of the coin and find that this dip is a good buying
opportunity. One that thing should be noted is that not the entire
stablecoins supply moving into exchanges will be pouring into
Bitcoin. A percentage of them will go into altcoins and another
will be withdrawn into fiat or kept on exchanges. Related Reading
| Is China Considering Lifting The Bitcoin Mining Ban? The
NDRC Runs Public Survey Nonetheless, a surge in the total supply is
still a good sign for BTC and may help the coin bounce back from
the correction. Sustained such inflows can prove to be bullish and
take the crypto to higher all-time highs (ATHs). Bitcoin Price At
the time of writing, BTC’s price floats around $63k, up 4% in the
last seven days. Over the past month, the crypto has gained 48% in
value. The below chart shows the trend in the price of the coin
over the last five days: BTC's price observes a correction in the
last few days, but now looks to be making a come back | Source:
BTCUSD on TradingView Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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