Stablecoin reserves on crypto exchanges have reached a new all-time high (ATH). In total, there would now be $17 billion worth of stablecoins on exchanges. What exactly does this say about the current situation?
Stablecoins are cryptocurrencies whose value is linked to fiat currency. Tether (USDT) is by far the most popular stablecoin with a market cap of over $62 billion. The value of USDT is always $1, making it an important tool in a trader’s arsenal. It can exchange quickly, easily and cheaply between cryptocurrencies such as bitcoin (BTC) and stablecoins.
The great thing about blockchain technology is that the flows that take place within a crypto network can be tracked. The same goes for stablecoins. A graph from CryptoQuant now shows that there are $17 billion worth of stablecoins on exchange accounts.
So these stablecoins are actually waiting on the sidelines. Lex Moskovski noted that he was not surprised that the recent dip below $30,000 was bought up so quickly. “There’s enough gunpowder for dips to occur,” Moskovski said. Of course, this is no guarantee that this will ultimately push the price up. In any case, it is a striking development.
Whale starts buying bitcoin again
The fourth largest whale in the world has also recently started buying bitcoin again. Two weeks ago, the whale sold 1,500 bitcoins for a price of $40,000. During the decline last week, the whale bought back 4,106 bitcoins worth about $140 million.
The whale in question started buying bitcoin in 2019 and now owns 115,000 bitcoins. This has a combined value of no less than $4 billion. The fact that the whale has bought bitcoin again during the dips may indicate that he or she has confidence in the coming period.