The post Bitcoin Bull Run Is Far From Than Expected as Stablecoin Inflows Hit All-Time-Low appeared first on Coinpedia Fintech News
Bitcoin’s market sentiment has been consistently bearish over the past few months, with the cryptocurrency facing continuous rejections from local highs. According to CryptoQuant analyst theKriptolik, the latest stablecoin exchange inflows have hit near all-time low levels suggesting a potential for a deeper price drop before investors re-enter the market.
This trend indicates a lack of confidence among investors regarding the end of Bitcoin’s recent downturn.
CryptoQuant analyst theKriptolik hints at one of the key indicators to watch is the flow of stablecoins into exchanges. Typically, after a sharp drop in Bitcoin’s price, investors who view the market as undervalued will move large amounts of stablecoins like USDT or USDC into exchanges.
These actions typically lead to a rapid increase in Bitcoin’s price, as the demand surges with new purchases.
However, current data shows a different story. Despite Bitcoin trading around $57,730 after a significant decline, there has been no substantial increase in stablecoin inflows. This unusual behavior suggests that investors are not convinced that Bitcoin has hit its bottom.
Right now, the lack of Stablecoin inflows suggests that investors confidence in Bitcoin short-term recovery is weak. With Bitcoin recently dipping below $58,000, the usual boost from stablecoin purchases is nowhere to be seen.
This shows a clear hesitation in the market, indicating that many traders don’t believe the price drop is over. Without this buying pressure, Bitcoin could see more declines or a sluggish recovery, making the market unpredictable.
On August 26, the market cap for stablecoins soared to a record $170 billion, surpassing the previous high of $167 billion set in March 2022. This marks nearly a year of steady growth. This boost in stablecoin value has been a major factor in Bitcoin’s recent rise to $65,000.
Leading the stablecoin charge were Tether’s USDT and Circle’s USDC have seen a significant resurgence this year. With USDT making a surge to $118 billion, followed by USDC to $34.67 billion.
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The post Bitcoin Bull Run Is Far From Than Expected as Stablecoin Inflows Hit All-Time-Low appeared first on Coinpedia.org.