The price of bitcoin (BTC) is about 70% under water from a year ago and we haven’t seen any serious upward movement in months. At the moment, however, we also see that the amount of stablecoins sent to exchanges has reached an all-time high. Historically, this has often been a rally in.
Stablecoin Inflow Rises
According to data analytics agency CryptoQuant It is clear to see that today there are extremely many stablecoins flowing towards exchanges. This one inflow is now higher than ever before in the history of the crypto market.
Of course, analysts look at all kinds of indicators that could herald a possible large price movement. The stablecoin flow is one of those indicators, and the massive stablecoin inflow right now is seen as a clear bullish signal seen.
That’s because past history shows that when stablecoins end up on exchanges like Binance again instead of in the hands of investors, large parties may be gearing up to buy. This could mean that so-called whales are ready the moment they believe the bottom has been reached.
Bitcoin rally
Earlier it was in the bitcoin news to read that CryptoQuant CEO Ki Young continues to closely monitor stablecoin flow. He stated at the beginning of October that he expects a decent rally for bitcoin if stablecoins flow to the exchanges in large numbers. USDC is especially for Young a stablecoin to keep an eye on. It is mainly this stablecoin that is used by institutions, according to the CryptoQuant CEO.
Yet it is not all roses and moonshine. The influx of stablecoins can also cause high volatility in the price in the short term, and not just to the upside. However, this does not seem to be the case for the time being. For several weeks, the volatility of the BTC rate historically low.