{"id":154255,"date":"2021-01-14T11:03:53","date_gmt":"2021-01-14T08:03:53","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges\/"},"modified":"2021-01-14T11:03:53","modified_gmt":"2021-01-14T08:03:53","slug":"is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges\/","title":{"rendered":"# Is a new rally brewing as Bitcoin reclaims $38K and stablecoins &#8216;flooding&#8217; exchanges?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4168c54b367\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4168c54b367\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges\/#Why_are_stablecoins_indicative_of_strong_buyer_demand_for_Bitcoin\" >Why are stablecoins indicative of strong buyer demand for Bitcoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges\/#Dry_powder_moving_to_exchanges\" >Dry powder moving to exchanges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges\/#So_what_comes_next\" >So what comes next?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Is a new rally brewing as Bitcoin reclaims $38K and stablecoins &#8216;flooding&#8217; exchanges? <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Bitcoin (BTC) has extended its recovery on Jan. 14, reclaiming the $38,000 level. What&#8217;s more, the weekly candle has now turned green for the fifth consecutive week despite the 28% crash earlier this week.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/61624e05-bd46-4e0b-93d1-3a5d4f81747a.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD Weekly candle chart (Bitstamp). Source: Tradingview<\/em><\/figcaption><\/figure>\n<p>Meanwhile, stablecoin deposits are flooding into cryptocurrency exchanges, according to data from CryptoQuant. This inflow may act as a short-term catalyst for Bitcoin as it suggests that sidelined capital is moving back into BTC. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/6a5238c8-f350-4871-a95f-d2edd1d30c0a.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Stablecoins inflow on exchanges. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Why_are_stablecoins_indicative_of_strong_buyer_demand_for_Bitcoin\"><\/span>Why are stablecoins indicative of strong buyer demand for Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the cryptocurrency market, many traders sell crypto assets, like Bitcoin, to stablecoins rather than cash.<\/p>\n<p>Stablecoins, such as Tether (USDT), is pegged to the value of the U.S. dollar and are tradable across exchanges.<\/p>\n<p>Most exchanges require a complicated Know Your Customer (KYC) verification process for bank transfers, and cash deposits into exchanges could take a long time.<\/p>\n<p>As such, if a whale or a high-net-worth investor wants to buy and sell millions of dollars worth of Bitcoin, stablecoins can be far more convenient than cash.<\/p>\n<p>The high demand for stablecoins from traders has led the valuation of Tether to increase in recent months. Last month,\u00a0the market cap of Tether surpassed $20 billion. A month later, this number is already above $24 billion,\u00a0indicating a rise in sidelined capital within the cryptocurrency market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dry_powder_moving_to_exchanges\"><\/span>Dry powder moving to exchanges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, stablecoin deposits into exchanges have increased substantially over the past 24 hours. CryptoQuant tracks the wallets of exchanges and observes stablecoin deposits and outflows. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/9c352677-5744-4a38-b536-422893b3e051.png\"><figcaption style=\"text-align: center;\"><em>Exchanges&#8217; stablecoin reserve. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>Across major exchanges, stablecoin deposits spiked noticeably on Jan. 13, right as the price of Bitcoin began to recover.<\/p>\n<p>On Jan. 13, the price of Bitcoin dropped to as low as $32,500 after nearly $1 billion worth of futures contracts were liquidated.<\/p>\n<p>Investors were actively buying the dip, as shown by the increase in stablecoin deposits and the increasing open interest of the Bitcoin futures market. As a result, Bitcoin saw a quick turnaround, rallying by more than 10% overnight.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/cc4826b5-585a-4e2f-b181-589158d68f52.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin futures open interest. Source: Bybt.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"So_what_comes_next\"><\/span>So what comes next?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alex Saunders, a cryptocurrency analyst, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AlexSaundersAU\/status\/1349504470464438273\">said<\/a> that stablecoins are \u201cflooding exchanges,\u201d which is often indicative of a bullish trend.<\/p>\n<p>Prior to the recovery, Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said an all-time high is likely for Bitcoin if it surpasses $38,000 again.<\/p>\n<p>Overnight, the price of Bitcoin pierced through the $38,000 resistance area, which Van de Poppe pinpointed. Hence, in the short term, BTC is on track to retest its record-high. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1349464990596689920\">said<\/a>:<\/p>\n<blockquote><p>\u201cBitcoin didn&#8217;t change much. It flipped the $33,000 level for support and therefore is eager to test the $37,000-38,000 level. That one needs to flip. If it does, we&#8217;ll be eager for new all-time highs. If not, more consolidation likely.\u201d<\/p><\/blockquote>\n<p>Bitcoin\u2019s rally also coincides with the opening of Grayscale\u2019s products on Jan. 13.\u00a0If the value of Bitcoin continues to rise, it could propel more institutional and accredited investors to obtain exposure to BTC through the Grayscale Bitcoin Trust (GBTC).<\/p>\n<p>There is also a strong argument to be made that the reopening of GBTC kickstarted the rally, to begin with, signifying that the uptrend is led by institutions, not by retail investors.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/is-a-new-rally-brewing-as-bitcoin-reclaims-38k-and-stablecoins-flooding-exchanges\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Is a new rally brewing as Bitcoin reclaims $38K and stablecoins &#8216;flooding&#8217; exchanges? &#8221; The price of Bitcoin (BTC) has extended its recovery on Jan. 14, reclaiming the $38,000 level. What&#8217;s more, the weekly candle has now turned green for the fifth consecutive week despite the 28% crash earlier this week.\u00a0 BTC\/USD Weekly candle&#8230;<\/p>\n","protected":false},"author":1,"featured_media":154256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/c8c3e76c-5040-4161-90b6-a2153331c986.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,80178,74937,76550,75493,73785],"class_list":["post-154255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-investment-trust","tag-bitcoin-price","tag-grayscale","tag-stablecoin","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/154255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=154255"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/154255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/154256"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=154255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=154255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=154255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}