Bitcoin Exchanges Just See Massive Tether Stable Coins Deposits


Almost half a billion Tether entries were recorded on April 8 on major Bitcoin (BTC) exchanges, based on data from Glassnode.

Considering that the entries, the largest since mid-March, coincided with a slight pullback in Bitcoin, this indicates that buyers may be waiting to intervene after the BTC prices drop.

Stablecoin deposits in exchanges. Source: Glassnode

Is a wider Bitcoin rally brewing?

There are two major on-chain metrics that often signal the formation of a bigger Bitcoin rally: BTC exits and stablecoin flows.

Stable inflows of coins occur when traders deposit their marginalized funds on exchanges to redeem them in cryptocurrencies.

Meanwhile, large outflows of BTC usually occur when wealthy investors withdraw their Bitcoin from stock exchanges to self-hosted wallets, often suggesting their intention to hold it for the long term.

ALSO READ  Bitcoin Price Doubled In 75 Days - How Long Until The Next 100% Step?

Within an hour, more than $ 476 million of stable deposits were spotted on the exchanges. According to Lex Moskovoski, the CIO of Moskovoski Capital, this shows that there is no shortage of capital to buy Bitcoin dips.

Moskovsky mentionned:

“$ 476 million USDT deposited on the exchanges in an hour yesterday to buy the bottom. Every time we dive there’s no shortage of cash on the margin, it seems.”

Stable coins are experiencing massive growth

On April 2, Bitfinex CTO Paolo Ardoino said the market capitalization of Tether, the world’s largest stablecoin, had reached $ 42 billion in market capitalization.

In the next six days, Tether’s market cap (USDT) added an additional $ 2 billion, showing strong momentum.

ALSO READ  China, Japan move forward with CBDC pilots

Since Tethers are essentially digital dollars that can be easily converted into Bitcoin and other cryptocurrencies, this upward trend suggests that the amount of marginalized capital in the crypto market is increasing.

Theoretically, when there is a lot of money on the sidelines in the market, this represents significant firepower to drive a new rally in major cryptocurrencies like Bitcoin.

When request While large USDT deposits could also mean there was a withdrawal request instead, Moskovsky countered by saying that USDT deposited on exchanges generally represents buying intent.

ALSO READ  Why is Bitcoin stuck below $ 60,000? Gold market cap may hold the answer

It Explain:

“Stable coins deposited on exchanges are primarily for buying. Some can be used to lend to leveraged traders. […]. Besides, it is also bullish as it highlights the demand for longs. “

Meanwhile, CryptoQuant data illustrates a similar trend. The ratio of all Stable Coin Exchanges (ESRs), for example, which divides all Bitcoin reserves on the exchanges by stable coin reserves, is rising again, suggesting that investors may re-enter the market.

Stablecoins Ratio. Source: CryptoQuant