Fun

Bitcoin traders anticipate new highs, according to stablecoin flows to exchanges

News Feed - 2024-03-09 02:03:03

Nancy Lubale6 hours agoBitcoin traders anticipate new highs, according to stablecoin flows to exchangesStablecoin flows to exchanges highlight traders’ belief that the crypto market is ready to rally higher.1835 Total views1 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksOn March 8, Bitcoin (BTC) price hit a new all-time high at $70,083, and even though the price corrected sharply after hitting a new high, stablecoin data suggests that traders are preparing for higher prices.


There is an uptick in stablecoin inflows with renewed price action in the crypto market, driven by spot Bitcoin (BTC) exchange-traded funds in the United States.


The balances of tether (USDT) and USD Coin (USDC) deposited into crypto exchanges have increased by 6.5% in March, suggesting that traders are preparing to buy more crypto as they expect Bitcoin to resume its uptrend.


Data from market intelligence firm Glassnode shows that holdings in known crypto exchange wallets rose from $18.43 billion on March 1 to surpass $19.63 billion on March 8.Stablecoin balance on exchanges. Source: Glassnode


Additional data from market data provider CryptoQuant reveals that while stablecoin balances on crypto exchanges spiked during the first eight days of March, the number of stablecoin deposit transactions also grew in tandem with crypto prices.All stablecoins deposit transactions to exchanges. Source: CryptoQuant


In the meantime, the total stablecoin market capitalization grew by 1.2% in March to $145.2 billion at the time of publication, according to data from DefiLlama. Tether’s USDT accounts for more than 70% of this value, with a market cap of $101.2 billion.Total stablecoin market capitalization. Source: DefiLlama


The total trading volume of all stablecoins now stands at around $112.7 billion, with USDT alone making up $86.65 billion billion of these volumes.


The growth of stablecoin inflows to exchanges and market cap have historically been considered good indicators for determining market participants" positioning.


Accelerated by the amazing performance of the spot BTC ETFs and the upcoming Bitcoin supply halving – which is roughly 41 days away – stablecoin reserves on exchanges continue to increase.


As previously reported by Cointelegraph, growing stablecoin inflows to exchanges kickstarted Bitcoin’s rally in October 2020.


Related:Bitcoin just hit a record in open interest — expect imminent volatilityAre Bitcoin traders capitulating?


Increasing stablecoin inflows to exchanges is often viewed as acatalyst for positive price action in the crypto market, indicating that available capital is moving back into digital assets.


According to X social network user Bitcoin Munger, stablecoin market cap grew in tandem with the growth in the price of BTC.Aggregate stablecoin market cap vs. BTC price. Source:Bitcoin Munger/X


Analysts at market data tracking firm Santiment observed that medium and large investors are staying put even after BTC’s retrace after briefly hitting a high of $69,324 on March 5.


“# Bitcoin’s sharks and whales aren’t going anywhere after the post-#AllTimeHigh volatility rocked markets. At the same time, overall, the number of non-0 $BTC wallets is declining, mainly due to small traders capitulating. Generally, this is a #bullish combination. ”BTC wallets by number of coins held. Source:Santiment


At the time of writing, Bitcoin is trading at $67,863, up 0.73% over the last 24 hours, according to data from CoinMarketCap.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Altcoin# Bitcoin Price# Markets# Cryptocurrency Exchange# Stablecoin# ExchangesAdd reactionAdd reaction

News Feed

FCA crypto regulators will take the best from TradFi and DeFi, says exec
Helen Partz11 hours agoFCA crypto regulators will take the best from TradFi and DeFi, says execThe United Kingdom’s FCA has been combining different approaches to regulating the crypto market to see which one would wor
IMF backs Nigeria crypto adoption amid local SEC crackdown
Alek Hidell10 hours agoIMF backs Nigeria crypto adoption amid local SEC crackdownThe IMF recommendation sets out to remedy the macroeconomic challenges Nigeria faces while attracting global investment.5837 Total views10
TRUMP token whale sells for $3.7M profit as memecoin starts decline
Zoltan Vardai14 hours agoTRUMP token whale sells for $3.7M profit as memecoin starts declineThe memecoin whale made an over 1,428% return on their initial investment in the TRUMP token.3538 Total views25 Total sharesList
Bitcoin’s Early Days: Reporter Recalls $200K Sushi Dinner After Spending 10 BTC, Former Bitcoin Dev Sells 55,000 BTC for Under $30 a Coin
Bitcoin’s Early Days: Reporter Recalls $200K Sushi Dinner After Spending 10 BTC, Former Bitcoin Dev Sells 55,000 BTC for Under $30 a Coin As bitcoin touched an
Arijit Sarkar13 hours agoDeSci-focused DAO community funds cancer researchVitaDAO community agreed to fund early-stage cancer research through the launch of a biotech company named Matrix Biosciences.1840 Total views8 To
Cointelegraph Innovation Circle8 hours agoLaunching a DeFi company? 9 tips for choosing the best localeEven in a digital era, choosing the right location for a new DeFi business can be a critical and complex task.424 Tot
Tom Mitchelhill6 hours agoFTX used Python code to fake its insurance fund figure — Gary WangFTX’s so-called “Backstop Fund” figure was a big lie, according to the crypto exchange’s former chief technology offic
Savannah Fortis9 hours agoCrypto community tells Elon Musk to dump Satoshi ‘X’ accountThe crypto community has asked Elon Musk to remove the X account under the name of Satoshi Nakamoto, claiming it is in breach of t
How Bitget Became a Dark Horse and Earns Market Share and Trust From Millions in Crypto Winter
How Bitget Became a Dark Horse and Earns Market Share and Trust From Millions in Crypto Winter sponsored 2022 was one of the roughest years in the crypto industry, which saw the col
Bitcoin Mining Chip Manufacturer Ebang to List on Nasdaq This Week
Bitcoin Mining Chip Manufacturer Ebang to List on Nasdaq This WeekOn Friday, June 26, the China-based Zhejiang Ebang Communication, often referred to as Ebang, will be listed on Nas
Experts Predict More Bank Failures in the US Following Interest Rate Hike and Unsettled Banking Crisis
Experts Predict More Bank Failures in the US Following Interest Rate Hike and Unsettled Banking Crisis After the recent bank collapses in the U.S., a number of people believe that
Solana-to-Bitcoin cross-chain bridge aims for Q3 2024 launch
Zhiyuan Sun3 hours agoSolana-to-Bitcoin cross-chain bridge aims for Q3 2024 launchThe ZPL-powered zBTC token will allow Bitcoin holders to engage with the Solana DeFi ecosystem.2949 Total views1 Total sharesListen to art