19:55Bitcoin exchanges just saw massive Tether stablecoin deposits
Is a broader rally forming for Bitcoin as sidelined capital makes its way onto exchanges?
Nearly half a billion in Tether (USDT) inflows were recorded on April 8 across major Bitcoin (BTC) exchanges, based on Glassnode data.
Considering that the inflows, the biggest since mid-March, coincided with a minor Bitcoin pullback, it indicates that buyers could be waiting to step in following BTC's price drop.
Is a broader Bitcoin rally brewing?
There are two major on-chain metrics that often signal a bigger Bitcoin rally is forming: BTC outflows and stablecoin inflows.
Stablecoin inflows occur when traders deposit their sidelined funds to exchanges to buy back into cryptocurrencies.
Meanwhile, large BTC outflows typically happen when high-net-worth investors withdraw their Bitcoin from exchanges to self-hosted wallets, which often suggests their intention to hold for the long term.
In one hour, more than $476 million worth of stablecoin deposits were spotted on exchanges. According to Lex Moskovski, chief investment officer of Moskovski Capital, this demonstrates that there is no shortage of capital waiting to buy Bitcoin dips.
In the following six days, the market cap of USDT added another $2 billion, showing strong momentum.
Since Tether is essentially digital dollars that can be easily converted into Bitcoin and other cryptocurrencies, this uptrend suggests that the amount of sidelined capital in the crypto market is growing.
Theoretically, when there is a lot of sidelined cash in the market, it represents significant firepower to drive a new rally of major cryptocurrencies like Bitcoin.
When asked whether large USDT deposits could also mean that there’s a demand to cash out instead, Moskovski countered by saying that USDT deposited to exchanges typically represents an intention to buy.
|Total comments: 0|
|How Elon Musk Crashing Bitcoin To Grow Dogecoin Is A Silly Move (0)|
|Bitcoin (BTC) Inflows into Crypto Exchanges Hit a 1 Year High (0)|
|Bitcoin stabilizes after sell-off, faces resistance near 53k (0)|
|Bitcoin Weekly Forecast: BTC clings to support, on-chain metrics show sellers' onslaught (0)|
|TESLA HAS ONE OTHER BIG REASON FOR HALTING BITCOIN PAYMENTS (0)|
|Bitcoin falls as Binance said to face investigations from US Justice Dept and IRS (0)|
|SEC to Weigh Whether Bitcoin Futures Market could Accommodate ETFs (0)|
|MoneyGram to Enable Users to Buy Bitcoin and Withdraw it From Birck-and-Mortar Locations (0)|
|USD Index is Crashing; It Has Been Historically Bullish for Bitcoin (0)|
|SEC Warns of Bitcoin Futures Risks in Mutual Fund Investments (0)|