Bitcoin traders expect new highs as a stable coin comes to exchanges.
On March 8, the price of Bitcoin (BTC) reached a new all-time high of $70,083, and although the price has corrected sharply since reaching the new high, stable coin data suggests that traders are preparing for higher prices.
Stablecoin earnings have surged with renewed price action in the crypto market, led by spot bitcoin (BTC) exchange-traded funds in the United States.
Tether (USDT) and USD Coin (USDC) balances in crypto exchanges increased by 6.5% in March, indicating that traders are preparing to buy more crypto, as they expect Bitcoin to continue its growth.
According to data from market intelligence firm Glassnode, holdings in popular crypto exchange wallets rose from $18.43 billion on March 1 to $19.63 billion on March 8.
Additional data from market data provider CryptoQuant shows that in the first eight days of March, as stablecoin balances on crypto exchanges increased, the number of stablecoin deposit transactions grew along with crypto prices.
Meanwhile, the total market capitalization of the stablecoin in March increased by 1.2% to $ 145.2 at the time of publication, according to Defillama data. Tether USDT accounts for over 70% of this value, with a market cap of $101.2 billion.
The total trading volume of all stablecoins now stands at $112.7 billion, with USDT alone accounting for $86.65 billion of these volumes.
Statcoin currencies have historically been considered good indicators for determining the position of market participants in terms of currency and market price growth.
Accelerated by the impressive performance of the spot BTC ETF and the upcoming Bitcoin supply halving — about 41 days away — the stablecoin's stock on exchanges continues to rise.
As previously reported by Cointelegraph, the flow of stablecoins to exchanges in October 2020 kicked off Bitcoin's rally.
Related: Bitcoin Just Recorded in Open Interest – Expect Inevitable Volatility
Are Bitcoin Traders Under Control?
The addition of stablecoins to exchanges is often seen as a catalyst for positive price action in the crypto market, indicating that available capital is returning to digital assets.
According to X social network user Bitcoin Munger, the market value of stablecoin has increased along with the growth of BTC price.
Analysts at market data tracking firm Sentiment noted that medium and large investors are holding on to BTC's rebound after it briefly reached $69,324 on March 5.
#Bitcoin sharks and whales aren't going anywhere after the post-#AllTimeHigh volatility markets shake up. At the same time, in general, the number of 0 $ BTC non-wallets is decreasing, mainly due to small traders. Overall, this # is a bully combination. “
According to CoinMarketCap data, at the time of writing, Bitcoin is at $67,863, up 0.73% in the last 24 hours.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
