bullish rally
Surge in Stablecoin Supply Signals Robust Capital Inflow to the Crypto Market – Blockchain News, Opinion, TV and Jobs
Published
2 months agoon
By
adminBy Enoch Mutembei
In the past week, Bitcoin has experienced a bullish rally, breaking through the highly coveted $52,000 threshold and reclaiming nearly all losses incurred since the FTX collapse. This milestone is crucial for an industry grappling with a prolonged bear market.
Coinciding with Bitcoin’s upward trajectory is a noticeable uptick in the combined market capitalization of major stablecoins, including USDT, USDC, BUSD, and DAI. The aggregate market cap of these four stablecoin giants has expanded from $131.232 billion to $138.993 billion between Feb. 13 and Feb. 20, indicating a heightened demand.
Stablecoins play a pivotal role as a bridge between fiat currencies and the crypto market, constituting the majority of crypto trading pairs and, consequently, the primary source of market liquidity. The escalating market cap underscores the increasing adoption of stablecoins, solidifying their status as the preferred medium for engaging with cryptocurrencies.
Taking a broader perspective reveals that there has been a 3.475% surge in the supply of the top four stablecoins over the past 30 days. While various factors could contribute to this increase, it predominantly signifies a market-wide inclination to shift assets, be it fiat or crypto, into stablecoins in anticipation of upcoming trading activities. This suggests a market gearing up for swift entry or exit from Bitcoin.
Supporting this trend is a notable rise in the stablecoin supply ratio (SSR). The SSR is a crucial metric gauging the supply of stablecoins relative to Bitcoin’s market cap, indicating market liquidity depth and potential buying power. An elevated SSR implies a greater proportion of stablecoins relative to Bitcoin, potentially influencing an increase in Bitcoin’s price if these stablecoins were converted into Bitcoin.
The SSR surpassing the upper Bollinger band in Feb 2024 signifies an unusual surge in potential buying power. This suggests investors are possibly positioning themselves to transition into Bitcoin or other cryptocurrencies, aligning with the observed uptick in Bitcoin’s price since Jan 2024.
The surge in Bitcoin’s price, coupled with the growing market cap and supply of major stablecoins, points towards a substantial influx of capital into the crypto market. For stablecoins, these trends underscore their pivotal role in the ecosystem, serving not only as safe havens during volatility but also as crucial instruments for deploying capital into Bitcoin.
The trends observed last week underscore the interconnectedness of the stablecoin market with Bitcoin and highlight how fluctuations in stablecoin supply and market cap can serve as indicators of imminent market activity.
Source link
You may like
Bitcoin Raises Bull Flag, Formation Triggers Calls For $100,000
Bitcoin Just Entered a ‘Second Danger Zone,’ Warns Crypto Analyst – Here Are His Targets
Forbes Unveils 20 Crypto ‘Zombies,’ Declares Ripple And XRP Among The Undead
Crypto Trader Issues Bitcoin Warning, Says Ethereum Liquid Staking Project Flashing Short-Term Bullish Signal
Crypto Analyst Predicts Massive Move For Bitcoin, What’s The Target?
Analyst Warns One Crypto Asset Category About To Face a Reckoning, Maps Path Forward for Bitcoin and Hedera
Bitcoin Raises Bull Flag, Formation Triggers Calls For $100,000
Bitcoin Just Entered a ‘Second Danger Zone,’ Warns Crypto Analyst – Here Are His Targets
Forbes Unveils 20 Crypto ‘Zombies,’ Declares Ripple And XRP Among The Undead
Crypto Trader Issues Bitcoin Warning, Says Ethereum Liquid Staking Project Flashing Short-Term Bullish Signal
Crypto Analyst Predicts Massive Move For Bitcoin, What’s The Target?
Analyst Warns One Crypto Asset Category About To Face a Reckoning, Maps Path Forward for Bitcoin and Hedera
DOGE Price Prediction – Dogecoin Below $0.14 Could Spark Larger Degree Drop
WhalesNight AfterParty 2024 – Blockchain News, Opinion, TV and Jobs
‘Violent to the Upside’: This Catalyst Could See Bitcoin Explode by up to 1,486%, Says Strike CEO Jack Mallers
85% Of Altcoins In “Opportunity Zone,” Santiment Reveals
Ethereum, Solana and Altcoins Approaching ‘Banana Zone,’ According to Macro Guru Raoul Pal – Here’s His Outlook
Bullish March Marks Record for Bitcoin – Blockchain News, Opinion, TV and Jobs
Why Is The Dogecoin Price Down Today?
The AI-Based Smart Contract Audit Firm “Bunzz Audit” Has Officially Launched – Blockchain News, Opinion, TV and Jobs
Successful Beta Service launch of SOMESING, ‘My Hand-Carry Studio Karaoke App’
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
BNM DAO Token Airdrop
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
New Minting Services
Block News Media Live Stream
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs
Friends or Enemies? – Blockchain News, Opinion, TV and Jobs
Enjoy frictionless crypto purchases with Apple Pay and Google Pay | by Jim | @blockchain | Jun, 2022
Block News Media Live Stream
Block News Media Live Stream
How Web3 can prevent Hollywood strikes
XRP Explodes With 1,300% Surge In Trading Volume As crypto Exchanges Jump On Board
Block News Media Live Stream
Trending
- Altcoins2 years ago
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
- Binance2 years ago
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
- Uncategorized2 years ago
BNM DAO Token Airdrop
- BTC1 year ago
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
- Uncategorized2 years ago
New Minting Services
- Video1 year ago
Block News Media Live Stream
- Bitcoin miners2 years ago
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
- Bitcoin1 year ago
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs