Stablecoin Exchange Inflow Mean Hits ATH, Why This Could Be Bullish For Bitcoin

2022-11-3 19:00

On-chain data shows the stablecoin exchange inflow mean has reached a new all-time high, here’s why this might prove to be bullish for Bitcoin.

Stablecoin Exchange Inflow Mean Has Surged Up To A New ATH Recently

As pointed out by an analyst in a CryptoQuant post, these inflows can be positive for Bitcoin in the long term, but might be bearish in the short term.

The “stablecoin exchange inflow mean” is an indicator that measures the average amount of stablecoins per transaction going into the wallets of centralized exchanges.

As stablecoins are relatively stable in value (as their name already implies) due to them being tied to fiat currencies, investors in the crypto space use them for escaping the volatility associated with most other coins.

Once these holders feel that prices are right to enter back into volatile markets like Bitcoin, they convert their stables into them using exchanges.

Because of this, a large number of these coins moving into exchanges can provide buying pressure for the volatile cryptos, and hence surge up their prices.

Now, here is a chart that shows the trend in the stablecoin exchange inflow mean, as well as the corresponding Bitcoin prices, over the last couple of years:

The value of the metric seems to have been pretty high in recent days | Source: CryptoQuant

As you can see in the above graph, the stablecoin exchange inflow mean has observed some sharp uptrend in recent weeks, and has now set a new all-time high.

This suggests that the average transaction going into exchange wallets is currently carrying larger amounts than ever.

In the chart, the quant has also marked the periods where a similar trend was seen during the last couple of years.

It looks like in both the previous instances, high values of the indicator lead to the price of Bitcoin forming a bottom, and then subsequently observing some uplift.

However, the bullish effect has usually been delayed, suggesting that the current high values would only be constructive for BTC in the long term.

The analyst notes that in the short term, this trend in the stablecoin inflow mean could cause volatility for Bitcoin, thus possibly providing a negative effect to it.

Bitcoin Price

At the time of writing, Bitcoin’s price floats around $20.3k, down 2% in the last week. Over the past month, the crypto has gained 6% in value.

Looks like the price of the crypto has slightly declined in the last few days | Source: BTCUSD on TradingView Featured image from Traxer on Unsplash.com, charts from TradingView.com, CryptoQaunt.com

Similar to Notcoin - Blum - Airdrops In 2024

origin »

USDx stablecoin (USDX) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 1.62 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 1.2368 (-100%)

stablecoin bitcoin exchange mean inflow new might

stablecoin bitcoin → Результатов: 126


Фото:

US ‘Investigating’ If Tether, Bitfinex ‘Illegally Moved’ Bitcoin Price to $20K

Bitcoin’s latest price plunge has coincided with fresh scrutiny of stablecoin Tether and exchange Bitfinex almost a year after both received subpoenas from US authorities. DoJ ‘Homing In’ On Tether, Bitfinex As Bloomberg reports November 20 citing “three people familiar with the matter,” Tether and Bitfinex, which share a CEO, are under suspicion of market manipulation.

2018-11-21 23:00


Фото:

South Korea: Kakao and Terra Partner to Create Blockchain Ecosystem, dApps, and Stablecoins

Kakao, South Korea’s largest mobile carrier, has signed a partnership with stablecoin project Terra to collaborate on a blockchain-based payments system, reported Korea Times on November 15, 2018. Kakao and Terra Partnership Kakao’s native blockchain platform “Klaytn” is a highly-scalable protocol with average block times of one second and the ability to deploy decentralized applications (dApps) for end users which.

2018-11-17 06:00


Trump’s attorney general once endorsed a ‘time travel’ cryptocurrency

Some very strange details have surfaced regarding Donald Trump’s newly appointed acting attorney general, Matthew Whitaker, and his involvement with a cryptocurrency for time travel. For years, Whitaker sat on the advisory board of World Patent Marketing, a marketing firm that has since been shut down by order of a federal judge, reports Mother Jones (via Cointelegraph).

2018-11-15 17:55


Фото:

CoinJar Cryptocurrency Exchange Founder Says Stablecoin Will Transform the Crypto World

At a time when stablecoins have become the rave of the moment in the cryptoverse, with several startups from Circle Internet Financial, Gemini, and others launching own dollar-backed altcoins, Asher Tan, the co-founder of CoinJar, a digital assets platform, has predicted a bright future for the price-steady alternatives according to a Financial Review report on November 12, 2018.

2018-11-13 06:00


Фото:

Switzerland: Cryptocurrency Firm X8 AG Obtains Sharia Compliance Certificate

The Reuters reported on Nov. 12th that X8 AG, a Swiss fintech company received Islamic finance certification for its stablecoin built on the Ethereum blockchain protocol. The firm was certified by the Shariyah Review Bureau (SRB), a respected Sharia consultancy and audit firm with a foothold in 12 countries including a license from Bahrain’s central bank.

2018-11-12 17:59