Stablecoins Reserve Surges Up Again, Dry Powder For Bitcoin’s Next Big Move?
September 27 2021 - 2:00PM
NEWSBTC
Data shows stablecoins volume has surged up once again. Past
pattern may suggest that this accumulation could be dry powder for
Bitcoin’s next big move. Bitcoin Stablecoins Reserve Rises Up Again
As pointed out by an analyst in a CryptoQuant post, the stablecoins
reserve seems to have risen again back to peak levels. The
stablecoins reserve is an indicator that shows the total amount of
stablecoins being held on wallets of all exchanges When the value
of this indicator moves up, it means investors could be moving out
of volatile crypto markets, and into the stable fiat tokens. High
values can imply investors are piling up these coins while waiting
to find the optimal openings into markets like BTC. Related Reading
| Why Bitcoin Bears Might Not Get To Buy New Lows On the other
hand, when the metric’s value shows a downtrend, it could mean
investors have started to move their funds from stablecoins back
into volatile markets. Large volumes moving out to exchanges and
into personal wallets will also register as a decrease in the
reserve. Now, here is a chart showing the latest trend of the
indicator vs the Bitcoin price: Stablecoins reserve has once again
hit a peak | Source: CryptoQuant As the above graph shows, the
metric has once again shown an uptrend recently as its values reach
up near the peak again. Lately the trend this year has been that
whenever stablecoins reserve shoots up, it means an accumulation of
dry powder for Bitcoin. And when the indicator goes back down,
these fiat tied coins are converted to BTC, showing up as a rise in
the crypto’s price. This trend can be seen in action in the above
chart as well. When BTC hit a bottom due to the El Salvador day
crash, stablecoins started dropping off quickly as BTC’s price
recovered back to a higher level. Related Reading | Will The
SEC Approve A Bitcoin Futures ETF In 2021? Here Are The
Implications Once the price hit a peak, the reserve started going
up once again as investors took the profits of the price increase
and moved into fiat-tied tokens. Now the stablecoins reserve has
plateaued at a peak again. This may mean investors are just waiting
to put their coins back in once the price is suitable. Perhaps once
Bitcoin gets pumped through these coins, it will be able to make a
big move up again. The analyst in the post believes this could be
one of the keys to hitting a new ATH. BTC Price At the time of
writing, Bitcoin’s price floats around $43.5k, up 0.2% in the last
seven days. The below chart shows the trend in the coin’s value
over the last five days. BTC's price heading on path of recovery
from the crash due to China's crypto ban | Source: BTCUSD on
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