Bitcoin’s price and stablecoin inflows – Should the latter’s downtrend worry you now?
The post Bitcoin’s price and stablecoin inflows – Should the latter’s downtrend worry you now? appeared on BitcoinEthereumNews.com.
Bitcoin’s recent uptrend correlated positively with the stablecoin exchange inflows These 7DMA inflows have been in decline since December Bitcoin [BTC] hit a high of $105.8k on Friday, 17 January. The quick price gains for the world’s leading crypto came alongside strong stablecoin inflows into exchanges. Source: CryptoQuant Insights In a post on CryptoQuant Insights, stablecoin inflows to exchanges were observed to be rising since Monday, 13 January. The price of Bitcoin has also been trending higher during the same period. While this seemed to be bullish in the short-term, it would be interesting to see if there were any patterns that repeated from the previous bull run. AMBCrypto also investigated the total market cap’s expansion, alongside stablecoin inflows. Stablecoin inflows skyrocketed in November, but the trend has slowed down Source: CryptoQuant The 7-day simple moving average for stablecoin exchange inflows was used to smooth out the data. It revealed a series of spikes from 2021-23. These spikes represented heightened stablecoin inflows to exchanges. The implication of greater inflows is bullish. More stablecoins sent to exchanges means there is more buying power in the market. Similarly a downturn in inflows can point towards bearish market conditions. The 7DMA made strong highs in November following the results of the 2024 U.S. presidential election. It maintained those lofty heights for nearly a month, but has been falling since the second week of December. This meant that despite the short-term inflows, the trend over the last six weeks has not been favorable to the buyers. Source: TOTAL on TradingView Comparing the stablecoin inflows to the total crypto market cap, 2021-22 saw the bull run commence and reach a conclusion in November 2021. Despite the slump in price action since then, the inflows chart showed multiple sizeable upward prongs in 2022 and also in…
Filed under: News - @ January 18, 2025 11:18 pm