Stablecoin

bullish

Bitcoin

USDC

Coin

After a <a href="https://thecoinrise.com/bitcoin-drives-crypto-market-caps-biggest-drop-in-2-years/" rel="noopener noreferrer nofollow">tumultuous week that saw Bitcoin (BTC) plummet</a> below $50,000, the leading cryptocurrency has made a swift recovery, now trading close to the $60,000 mark. This rebound may have more staying power than previous rallies, as indicators suggest that selling pressure on Bitcoin is waning.&nbsp;<h2 id="span-exchange-stablecoins-ratio-span">Exchange Stablecoins Ratio</h2>The “exchange stablecoins ratio,” a key metric tracked by blockchain analytics firm CryptoQuant, has dropped to its lowest level since February 2023. This ratio measures the amount of Bitcoin held in wallets tied to centralized exchanges relative to stablecoins. A declining ratio indicates that fewer traders are converting their Bitcoin into stablecoins, which are often used as a hedge against market volatility.“This could indicate reduced selling pressure on Bitcoin as fewer traders are converting their BTC into stablecoins,” CryptoQuant <a href="https://www.coindesk.com/markets/2024/08/13/bitcoins-prospects-strengthen-as-key-stablecoin-metric-slides-to-lowest-level-in-18-months/?utm_medium=referral&amp;utm_source=rss&amp;utm_campaign=headlines" rel="noopener noreferrer nofollow">explains</a>. The firm added that this trend might also suggest a bullish market sentiment, as traders appear to be holding onto their Bitcoin in anticipation of future price increases.Stablecoins, such as Tether (USDT) and USD Coin (USDC), are digital assets pegged to the value of the U.S. dollar or other external references. These stablecoins offer a safe haven for traders looking to avoid the price swings associated with more volatile cryptocurrencies like Bitcoin. They are also commonly used to fund spot crypto purchases and engage in derivatives trading.<h2 id="span-increasing-stablecoin-supply-span">Increasing Stablecoin Supply</h2>Further supporting this optimistic outlook is the increased supply of stablecoins. The combined supply of USDT and USDC has grown by approximately $2 billion since the market crash on August 5, reaching a total of $150.15 billion. On a year-over-year basis, the supply of these two leading stablecoins has surged by nearly 30%.This increase in stablecoin supply indicates a continued inflow of fiat money into the crypto market, likely from investors looking to buy Bitcoin at what they perceive to be discounted prices.&nbsp;<h2 id="span-institutional-support-span">Institutional Support</h2>The recovery has also been bolstered by positive net flows into Bitcoin spot ETFs. <a href="https://sosovalue.xyz/assets/etf/us-btc-spot" rel="noopener noreferrer nofollow">Data</a> from Monday shows that Bitcoin saw $28 million in inflows, while Ethereum (ETH) attracted $5 million, reflecting institutional support for these digital assets following the weekend’s price dip.&nbsp;As Bitcoin hovers near $60,000, the market appears cautiously optimistic. The decline in the exchange stablecoins ratio, combined with the inflow of stablecoins and institutional support, suggests that the current rally may have the legs to push BTC even higher in the coming weeks.The post <a href="https://thecoinrise.com/bitcoin-rallies-back-to-60000-as-stablecoin-ratio-turns-bullish/" rel="noopener noreferrer nofollow">Bitcoin Rallies Back to $60,000 as Stablecoin Ratio Turns Bullish</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Bitcoin Rallies Back to $60,000 as Stablecoin Ratio Turns Bullish

Table of Contents

TheCoinrise Media

Other articles published on Aug 13, 2024

Future of Interoperability with MoonTON

Bad News for Binance US from the Court! US Court of Appeals Overturns Decision on This Altcoin!

Is Bitcoin Price Breakout In Sight As It Returns to Previous Cycles?

Weekly Article Recap: 7/29-8/02

Do Kwon to be Extradited to South Korea: Montenegro Court Upholds Decision

Weekly Article Recap: 8/05-8/09

Join our free newsletter for daily crypto updates!