Massive Stablecoins Flew into the Exchanges, Is the Market Preparing for A Fresh Bull Run?
The crypto exchanges have witnessed massive inflows of stablecoins which has marked the highs in 2023
The drop in the Bitcoin prices at this point indicates the rise in the purchasing power of the market participants
The stablecoin dominance has increased drastically in recent times which has also impacted circulation. Recently, the supply of stablecoins on the exchanges has marked new highs, meaning, the traders are constantly transferring their stablecoins onto the exchanges. While, some may believe it is a bearish factor for Bitcoin and the other altcoin price, the crypto markets, in fact, may rebound from the bearish trend and rise high.
The stablecoin netflow has crossed $1 billion based on some popular on-chain platforms. The On the other hand, the BTC inflow to the exchanges remained relatively low, indicating the traders accumulating and holding BTC for a longer time.
The rise in the exchange balance reserve indicates that the traders are preparing to accumulate Bitcoin and other altcoins that may have a massive impact on the values of the major cryptos. This also indicates the surging buying power of and the demand for cryptos, which may drive the prices higher soon. At the same time, Bitcoin inflow to the exchanges has reminded relatively low.
Also, the whales have been accumulating USDT as the address holding large volumes of USDT has surged. Collectively, the rise in the stablecoin’s dominance has elevated its reserve within the exchange. All the signals are pointing towards a decent upswing which may get intensified if the bulls play a major role.