Stablecoins in Exchanges at Record High, Time to Buy Bitcoin
Ki-Young Ju of CryptoQuant now says Bitcoin is ready to gallop higher, judging by the number of stablecoins held in exchanges. On Feb 15, the analyst said this is the best time for traders to ramp up the dips in anticipation of more price gains in the coming days. Notably, on Feb 15, Bitcoin and crypto prices dumped to below $47k before rebounding strongly to spot rates, adding 15 percent week-to-date.
Outside of institutional support and high-power news, retailers play a significant role, especially when liquidity is thin. As such, those monitoring the performance of digital assets always check the number of new stablecoin issued and moved to exchanges. In exchanges operating outside the United States without fiat support, USDT, USDC, and other centrally issued stablecoins act as facilitators, enabling coin acquisition. Accordingly, the higher the stablecoin reserves in exchanges, the higher the likelihood of Bitcoin price expansion. The stablecoin reserve ratio at major exchanges is at peaks at spot levels, suggesting a possible pump above $50k in the immediate term.
Impact on the BTC Price:
Bullish. On Feb 14, the BTC/USD price rose to above $49k before correcting to sub-$47k. However, there appear to be more buyers judging from stablecoin reserves at exchanges, a new positive for Bitcoin and crypto bulls.
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