Stablecoin

2024

Bitcoin

USDC

<p>The post <a href="https://coinpedia.org/news/bitcoin-bull-run-is-far-from-than-expected-as-stablecoin-inflows-hit-all-time-low/">Bitcoin Bull Run Is Far From Than Expected as Stablecoin Inflows Hit All-Time-Low</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Bitcoin’s market sentiment has been consistently bearish over the past few months, with the cryptocurrency facing continuous rejections from local highs. According to CryptoQuant analyst theKriptolik, the <a href="https://cryptoquant.com/insights/quicktake/66d3687b8e55b5397432508f-Decline-in-Stablecoin-Inflows-Indicates-Investors-Do-Not-Believe-Bitcoins-Downtu?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=quicktake&amp;utm_content=thekriptolik" target="_blank" rel="noreferrer noopener nofollow">latest stablecoin exchange</a> inflows have hit near all-time low levels suggesting a potential for a deeper price drop before investors re-enter the market.</p> 
<p>This trend indicates a lack of confidence among investors regarding the end of Bitcoin’s recent downturn.</p> 
<h2 class="wp-block-heading" id="h-stablecoin-inflows-hit-atl">Stablecoin Inflows Hit ATL</h2> 
<p>CryptoQuant analyst theKriptolik hints at one of the key indicators to watch is the flow of stablecoins into exchanges. Typically, after a sharp drop in Bitcoin’s price, investors who view the market as undervalued will move large amounts of stablecoins like USDT or USDC into exchanges.&nbsp;</p> 
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   <p lang="en" dir="ltr">Fewer Stablecoin Inflows Hint <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> Slump Continues<br><br>“After a significant drop, we are still not seeing high levels of stablecoin inflows into the market. This data suggests that investors do not yet believe the downturn is over.” – By <a href="https://twitter.com/theKriptolik?ref_src=twsrc%5Etfw">@theKriptolik</a> <br><br>Link <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;">… <a href="https://t.co/hrk2dJj1Dk">pic.twitter.com/hrk2dJj1Dk</a></p>— CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1830525818340024820?ref_src=twsrc%5Etfw">September 2, 2024</a>
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<p>These actions typically lead to a rapid increase in Bitcoin’s price, as the demand surges with new purchases.</p> 
<p>However, current data shows a different story. Despite Bitcoin trading around $57,730 after a significant decline, there has been no substantial increase in stablecoin inflows. This unusual behavior suggests that investors are not convinced that Bitcoin has hit its bottom.</p> 
<h3 class="wp-block-heading" id="h-what-s-next-for-bitcoin">What’s Next for Bitcoin?</h3> 
<p>Right now, the lack of Stablecoin inflows suggests that investors confidence in <a href="https://coinpedia.org/news/could-bitcoin-defy-the-bears-top-bitcoin-analyst-points-to-past-patterns-for-hope/" target="_blank" rel="noreferrer noopener">Bitcoin short-term recovery </a>is weak. With Bitcoin recently dipping below $58,000, the usual boost from stablecoin purchases is nowhere to be seen.&nbsp;</p> 
<p>This shows a clear hesitation in the market, indicating that many traders don’t believe the price drop is over. Without this buying pressure, Bitcoin could see more declines or a sluggish recovery, making the market unpredictable.</p> 
<h2 class="wp-block-heading" id="h-stablecoin-market-cap-surge">Stablecoin Market Cap Surge</h2> 
<p>On August 26, the market cap for <a href="https://defillama.com/stablecoins?" target="_blank" rel="noreferrer noopener nofollow">stablecoins soared</a> to a record $170 billion, surpassing the previous high of $167 billion set in March 2022. This marks nearly a year of steady growth. This boost in stablecoin value has been a major factor in Bitcoin’s recent rise to $65,000.</p> 
<p>Leading the stablecoin charge were Tether’s USDT and Circle’s USDC have seen a significant resurgence this year. With USDT making a surge to $118 billion, followed by USDC to $34.67 billion.</p> 
<p>Also Check Out: <a href="https://coinpedia.org/news/august-2024-crypto-hacks-and-losses-unpacking-the-238-million-bitcoin-scam/" target="_blank" rel="noreferrer noopener">August 2024 Crypto Hacks and Losses: Unpacking the $238 Million Bitcoin Scam</a></p>

Bitcoin Bull Run Is Far From Than Expected as Stablecoin Inflows Hit All-Time-Low

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