Analysts often look at the movement, either flowfrom stablecoins as a possible indication that major price movements are imminent. Moving stablecoins to and from crypto exchanges is especially important in this regard. CryptoQuant CEO Ki Young points out how the start of a new bull market might look like this.
stablecoin influx
There will be few crypto investors and traders who do not believe that sooner or later a new bull market will erupt. The big question for them is, of course, when this will happen. This is mostly coffee grounds, but there are a number of indications that could potentially herald the start of a bull market.
When stablecoins are sent to exchanges in large quantities, it is usually a signal that financial institutions are getting ready to buy. That hasn’t happened yet, as stablecoins like USDC have actually mostly exited the exchanges as the bear market continued to decline.
A new bitcoin bull market
According to Young, 94% of USDC’s circulating supply is currently held at exchanges. Again a large part of this is owned by large financial institutions. Young argues that once this massive amount of stablecoins starts flowing back to the exchanges, there could be a serious rally bitcoin (BTC) or even the start of a true bull market is coming.
“The next #Bitcoin parabolic bull run could begin as massive $USDC flows to exchanges. Currently, 94% of USDC supply is off-exchange, some of which are held by TradFis such as BlackRock, Fidelity, Goldman Sachs, etc. They get moving when they get orders from their customers.”
The next #Bitcoin parabolic bull run might begin when massive $USDC flows into exchanges.
For now, 94% of the USDC supply is outside exchanges, some of which are owned by TradFis like BlackRock, Fidelity, Goldman Sachs, etc.
They’ll move when they get orders from their clients. pic.twitter.com/Bqenvgugw1
— Ki Young Ju (@ki_young_ju) October 7, 2022
Of course, Young cannot predict when the anticipated inflow from USDC to exchanges will occur. However, he is convinced that this will have major, positive consequences for the prices of most cryptocurrencies.