Stablecoin Supply Rising, Diminishing Bitcoin Reserves Ready To Fuel Next Leg Up
Bitcoin price is back in the mid-$50,000 range, unable to push any lower despite bears best efforts and overheated technical indicators pointing to a potential trend reversal. However, several fundamental factors are proving to be too strong, and are setting the stage for the next leg up in the ongoing cryptocurrency bull trend instead. Here’s […]
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As Bitcoin (BTC) continues to trade in the high $100,000 range following the October 9 crypto market crash, some bullish signs are starting to emerge. Notably, stablecoin reserves on leading crypto exchanges like Binance are entering all-time high (ATH) territory, hinting at a potential rally for BTC. Stablecoin Reserves Rise – Will Bitcoin Benefit? According to a CryptoQuant Quicktake post by contributor PelinayPA, Binance stablecoin reserves are approaching ATH levels, indicating that investors are ready to deploy funds to accumulate BTC at current or lower levels. Related Reading:....
The Stablecoin market is once again proving to be one of the most important indicators for crypto recovery after one of the most violent crashes in recent history. On Friday, Bitcoin plunged to $103,000 within minutes, triggering a wave of panic across the market as overleveraged positions were wiped out and Altcoins lost more than 80% of their value in the same period. The sudden correction left investors questioning whether this marked the end of the bull phase or simply a reset before the next leg up. Related Reading: Bitmine Receives 23,823 Ethereum From BitGo As Institutional....
According to a report by Glassnode, bitcoin’s declining stablecoin supply ratio (SSR) indicates an increased supply of newly minted coins on exchanges. In turn, this increase in supply means exchanges are currently “highly liquid and ready to buy up assets such as bitcoin.” Stablecoin Supply Growth As explained in the report, the SSR is a ratio of the total value of all bitcoins versus stablecoins. This metric “decreases when (either) the price of BTC is low or when more stablecoins are entering circulation.” However, with BTC prices are already high, this....
The U.S. Office of the Comptroller of the Currency (OCC) on Monday published a letter clarifying that national banks and federal savings associations can now hold reserves for stablecoin issuers in the country. According to the OCC’s interpretive letter, reserve accounts can either be funded through deposits from stablecoin issuers or deposits from individual stablecoin holders. It stressed that banks can hold such reserves provided that ”the issuer has sufficient assets backing the stablecoin in situations where there is a hosted wallet.” The letter responds to questions....
The crypto market is entering a new phase, with many investors calling for an extended bull cycle that could reshape the months ahead. While Bitcoin, Ethereum, and leading altcoins continue to dominate headlines, the true drivers of this momentum appear to be stablecoins. These digital assets, often overlooked in favor of more volatile tokens, are […]