Leading On-Chain Data Analytics Provider CryptoQuant.com tweeted that it has spotted many stablecoins being deposited across many exchanges. Giving more thought to this scenario, the data analyst said despite BTC losing value, the potential purchasing power of the market was increasing. As such, it stated that the market was bullish.
https://twitter.com/cryptoquant_com/status/1632584287286591488
To get an understanding of what the crypto community thought about this scenario, CryptoQuant hosted a poll on its website. It turned out that 73% of the community thought the market was bullish while 27% thought it was a bear market. However, since it’s been just a day of hosting the poll there seems to be a less number of people who have participated in the poll.
In particular, there were 16 voters who thought the market was bullish while 6 voters thought the market was bearish. It would be interesting to see how the results will alter when the masses express their opinions in the coming days.
According to Dune.com a crypto analysis platform, it could be seen that USD coin occupied 68.7% of the transfer volume within the last 30 days while Tether which was second only to USDC, occupied 20.2%. Thirdly, Binance USD occupied 6.6% of the transfer volume while the rest was shared among Dai, Paxos, Frax, and TrueUSD. Whether the accumulation of stablecoins was a precautionary measure to combat volatility or preparation for the next surge is yet to be determined.
Meanwhile, BTC has been losing value when compared to Tether (USDT). As shown in the 4-hour chart below. BTC has been rebounding on the 200-day MA (Yellow Line) since late February. However, it took a fall on March 3 and lost 4.84% of its value.
BTC/USDT 4-hour Chart (Source: Tradingview)
Notably, this fall was followed by a death cross where the 50-day MA crossed the 200-day MA from above. Unlike in regular death crosses where prices fall drastically, BTC is consolidating. The question is, is this the calm before the storm? Will those buyers who are stacking up stablecoins spring to action and skyrocket BTC price? The wait is on.
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Source: Cryptocurrency - investing.com
