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Massive Inflows of Stablecoins Waiting on Sidelines as Bitcoin Hovers Above $33,000

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Sun, 01/31/2021 - 11:42
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Alex Dovbnya
USDC tokens are getting sent to exchanges at a rapid pace amid Bitcoin’s choppy trading streak
Massive Inflows of Stablecoins Waiting on Sidelines as Bitcoin Hovers Above $33,000
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Glassnode CTO Rafael Schultze-Kraft has spotted “massive” inflows of USD Coin (USDC) to major cryptocurrency exchanges over the past month.       

net volume
Image by @n3ocortex

He alleges that this sidelined capital could flow into Bitcoin, with potential buyers waiting for the right moment to get into the market. 

Record-breaking stablecoin inflows

On Jan. 29, CryptoQuant mentioned that stablecoin inflows on all cryptocurrency exchanges reached a new all-time high.  

Tether, the largest stablecoin with a market cap of $26.5 billion, is still responsible for the highest percentage of all holdings (42.6 percent).

Yet, numerous competing stablecoins are vying to take away its throne, with Binance USD (BUSD) and USDC coming in second and third places, respectively.

Stablecoin
Image by @cryptoquant_com

A large number of stablecoin deposits sitting on the sidelines is usually considered to be bullish for Bitcoin since they represent the buyers’ gunpowder.  

Related
Tether's Biggest Rival Now Has $4 Billion Market Cap

A short-lived Elon Musk pump

At press time, Bitcoin is trading at $33,691 on the Bitstamp exchange, with the bullish momentum gradually waning.

The Elon Musk pump that sent the cryptocurrency to $38,000 on Friday ended up being a flash in the pan.

The bulls have hours to save Bitcoin’s monthly candle that currently looks very similar to the December 2017 top.

The cryptocurrency climbed to a new all-time high on Jan. 8, which was followed by a series of brutal corrections.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.