Editor's PiCK
[Analysis] "Increase in Stablecoin Supply... Potential for Bitcoin Price Rise↑"
Summary
- It was reported that the increase in stablecoin supply is raising buying pressure in the cryptocurrency market.
- An analyst at the virtual asset analysis platform CryptoQuant stated that buying standby funds are accumulating, indicating a potential for a quick rebound.
- The increase in stablecoin market capitalization can be considered a bullish signal for the market.
An analysis has emerged suggesting that the influx of stablecoins into the virtual asset (cryptocurrency) market is increasing potential buying pressure.
On the 21st, Crypto Dan, an analyst at the virtual asset analysis platform CryptoQuant, stated in a Quicktake report, "In the current adjustment phase, unlike last year's adjustment, the supply of stablecoins is actually on the rise," adding, "This can be interpreted as buying standby funds gradually accumulating."
The analyst added, "The current market is in a state with the potential to rebound quickly if a strong catalyst emerges," and "It is still too early to conclude that this cycle has ended."
As of today, the total market capitalization of stablecoins is 230.45 billion dollars (approximately 337 trillion won), with an additional 2.3 billion dollars added over the past week. Compared to the same period last year, this is an increase of 56%.
Typically, an increase in the issuance and holding of stablecoins can act as buying pressure in the market, considered a bullish signal. Conversely, it can be interpreted as a decrease in demand for virtual assets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
