Crypto Currency Tracker logo Crypto Currency Tracker logo
NewsBTC 2023-06-19 16:00:04

Stablecoins Supply Finally Shows Rise, Here’s Why This Is Bullish For Bitcoin

On-chain data shows the supply of stablecoins has been going up recently, a sign that could potentially be bullish for Bitcoin. Stablecoins Have Registered An Increase In Their Supply Recently As pointed out by an analyst in a CryptoQuant post, every increase in stablecoins’ supply since late 2022 has been accompanied by a rise in the price of Bitcoin. The metric of interest here is naturally the combined circulating supply of all stablecoins. When the value of this indicator rises, it means that capital is entering into the stables currently as more of their tokens are being minted. On the other hand, a decline implies investors are either redeeming these fiat-tied tokens for currencies like the dollar or shifting them into other cryptocurrencies like Bitcoin. Generally, investors use stables whenever they want to avoid the volatility associated with most of the coins in the sector. Thus, whenever the supply of these tokens is going up, it can also be a sign that investors are possibly retreating from the volatile markets. When such investors eventually feel like the prices are right to jump back into the other assets, they simply exchange their stablecoins for their desired coins. Naturally, this can provide bullish pressure on the price of the cryptocurrency that they are shifting into. Related Reading: Bitcoin Price Steadies Above $26K, Can Bulls Pump It Further? Now, here is a chart that shows the trend in the combined circulating supply of the stablecoins over the past year and a half: The value of the metric seems to have been going up in recent days | Source: CryptoQuant As displayed in the above graph, the combined circulating supply of the stablecoins had started moving on an overall downtrend back when Bitcoin hit the bull market top. This decrease in the supply of these tokens implied the exit of capital from the market, as BTC and other coins also went down in value alongside this downtrend. In late 2022, however, the indicator finally showed a brief deviation from the downward trajectory as its value registered a sharp increase. Interestingly, not too long after this spike appeared, the price of Bitcoin started observing its rally. This increase in the supply of the stablecoins could have been a sign that a capital injection into the market took place, and as these freshly piled up stables were converted to the other coins, the market obtained its fuel for the rally. Related Reading: Bitcoin Retailers Buying The Dip As BTC Soars Above $26,000 In March of this year, when the rally had paused and the Bitcoin price had been going down, the metric had once again spiked, implying that investors may have possibly been withdrawing their BTC into the stables. After the bottom below $20,000, however, the supply of the stablecoins once more dropped, suggesting that holders were potentially exchanging back into Bitcoin. Naturally, the price of the asset observed a bullish boost from this, as the rally kicked back on. From the chart, it’s visible that the indicator has been rising again recently. Given that all such rises in the metric have been bullish for BTC during recent months, it’s possible that this fresh influx of capital can provide fuel for the asset this time as well. BTC Price At the time of writing, Bitcoin is trading around $26,400, up 2% in the last week. The value of the asset has gone up over the weekend | Source: BTCUSD on TradingView Featured image from CoinWire Japan on Unsplash.com, charts from TradingView.com, CryptoQuant.com

면책 조항 읽기 : 본 웹 사이트, 하이퍼 링크 사이트, 관련 응용 프로그램, 포럼, 블로그, 소셜 미디어 계정 및 기타 플랫폼 (이하 "사이트")에 제공된 모든 콘텐츠는 제 3 자 출처에서 구입 한 일반적인 정보 용입니다. 우리는 정확성과 업데이트 성을 포함하여 우리의 콘텐츠와 관련하여 어떠한 종류의 보증도하지 않습니다. 우리가 제공하는 컨텐츠의 어떤 부분도 금융 조언, 법률 자문 또는 기타 용도에 대한 귀하의 특정 신뢰를위한 다른 형태의 조언을 구성하지 않습니다. 당사 콘텐츠의 사용 또는 의존은 전적으로 귀하의 책임과 재량에 달려 있습니다. 당신은 그들에게 의존하기 전에 우리 자신의 연구를 수행하고, 검토하고, 분석하고, 검증해야합니다. 거래는 큰 손실로 이어질 수있는 매우 위험한 활동이므로 결정을 내리기 전에 재무 고문에게 문의하십시오. 본 사이트의 어떠한 콘텐츠도 모집 또는 제공을 목적으로하지 않습니다.