{"id":280254,"date":"2021-06-22T01:20:50","date_gmt":"2021-06-21T22:20:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/stablecoin-inflows-to-exchanges-dip-as-traders-watch-bitcoin-from-the-sidelines\/"},"modified":"2021-06-22T01:20:50","modified_gmt":"2021-06-21T22:20:50","slug":"stablecoin-inflows-to-exchanges-dip-as-traders-watch-bitcoin-from-the-sidelines","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/stablecoin-inflows-to-exchanges-dip-as-traders-watch-bitcoin-from-the-sidelines\/","title":{"rendered":"# Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a271983cbf52\" 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-6a271983cbf52\" 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\/stablecoin-inflows-to-exchanges-dip-as-traders-watch-bitcoin-from-the-sidelines\/#Stablecoin_inflows_rise_as_BTC_approaches_30000\" >Stablecoin inflows rise as BTC approaches $30,000<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The growth of stablecoin&#8217;s market cap and circulating supply has been one of the best indicators for attaining a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> pulse on how participants in the market are feeling during bullish and bearish times.<\/p>\n<p>Monitoring the Tether (USDT) treasury for large issuances was a common tactic used by analysts and traders to position themselves for a possible pump in the price of Bitcoin (BTC) and altcoins and previously this has been a good source of alpha for those willing to take a risk. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/806f57c4-0cb0-4251-b9b4-944a93f86763.png\"><figcaption style=\"text-align: center;\"><em>USDT circulating supply. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/full\/310?window=day\"><em>CryptoQuant<\/em><\/a><\/figcaption><\/figure>\n<p>A closer look at the data provided by CryptoQuant indicates that a seismic shift in the makeup of the stablecoin market may be taking shape as USDT issuance has begun to stagnate while the circulating supply of competitors like USD Coin (USDC) has resumed its uptrend over the past week. <\/p>\n<p>When looking at the exchange inflows and reserves of each individual stablecoin, there has actually been an increase in USDC deposited onto exchanges while the amount of USDT has declined, leading to the plateau seen in total stablecoin reserves held on exchanges.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/a06b5768-cdf2-49e8-bfc8-fd790fe76a5e.png\"><figcaption style=\"text-align: center;\"><em>USDC circulating supply. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/full\/313?window=day\"><em>CryptoQuant<\/em><\/a><\/figcaption><\/figure>\n<p>This is significant because Tether printing has historically been the impetus for major market moves, but its continued legal challenges and questions regarding assets held in reserve have made holding the token more of a liability as regulators increasingly crackdown\u00a0on the wild west nature of the cryptocurrency market. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/87772462-ca8a-4551-b5a3-fe34a903aa1c.png\"><figcaption style=\"text-align: center;\">All stablecoin reserves on exchanges. Source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/full\/581?window=day\">CryptoQuant<\/a><\/figcaption><\/figure>\n<p>As seen on the chart above, while the circulating supply of stablecoins was on a steady rise through the first five months of 2021 and accelerated somewhat as the market sold-off in May, issuance came to a standstill at the beginning of June as the reality set in that a bearish trend had taken over the market. <\/p>\n<p>There was also a spike in the stablecoin inflow transaction count that occurred on May 29, just as the stablecoin supply was peaking, which was followed by a brief increase in the price of BTC to $40,000 before another wave of selling dropped the price back below $34,000 and stomped out any building momentum. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/f7dea1fb-1af2-4853-b095-14e8e5d0d04c.png\"><figcaption style=\"text-align: center;\"><em>All stablecoins inflow transaction count to exchanges. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/full\/596?window=day\"><em>CryptoQuant<\/em><\/a><\/figcaption><\/figure>\n<p>Since then, stablecoin inflows to exchanges have fallen to the lowest level since October 2020. The Crypto Fear and Greed Index also registers &#8220;extreme fear&#8221;, backing up the argument that there is a lack of demand from retail and institutional level investors.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/7c888d13-966d-438a-95a8-224422262f14.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Cryptocurrency fear and greed index. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\"><em>Alternative<\/em><\/a><em>.me<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Stablecoin_inflows_rise_as_BTC_approaches_30000\"><\/span>Stablecoin inflows rise as BTC approaches $30,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p> While the month of June had seen a dry spell of stablecoin deposits onto exchanges, the drought may have come to an end on June 21 as a drop in the price of BTC below $33,000 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have enticed stablecoin holders to consider buying the dip. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> some signs of life, stablecoin floweth in.<br \/>Shh don&#8217;t say anything, you&#8217;ll scare it away! <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/HrWtizpKJO\">pic.twitter.com\/HrWtizpKJO<\/a><\/p>\n<p>\u2014 Tempting Beef (@tempting_beef) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tempting_beef\/status\/1406931477485568002?ref_src=twsrc%5Etfw\">June 21, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Further evidence of activity for USDC has been provided by Whale Alert, a well-known <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> bot that posted numerous updates about USDC minting and transfers on June 21 as the crypto market experienced another round of selling. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">         76,672,444 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/USDC?src=hash&amp;ref_src=twsrc%5Etfw\">#USDC<\/a> (76,672,444 USD) minted at USDC Treasury<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/v4OLyuuJE2\">https:\/\/t.co\/v4OLyuuJE2<\/a><\/p>\n<p>\u2014 Whale Alert (@whale_alert) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/whale_alert\/status\/1407006049501130754?ref_src=twsrc%5Etfw\">June 21, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Typically, stablecoin inflows are viewed as bullish, a recent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter from CryptoQuant offered a word of caution because similar spikes in stablecoin issuance in the past were followed by a prolonged period of sideways trading or price declines. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/83a1edc1-f05f-4c8d-9820-dfe006fdcd23.png\"><figcaption style=\"text-align: center;\"><em>All stablecoin issuance events. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/quicktake\/60cf8f673aa5ad6a7dacd239-Sable-coins-issuance-events\"><em>CryptoQuant<\/em><\/a><\/figcaption><\/figure>\n<p>CryptoQuant said: <\/p>\n<blockquote><p>\u201cAfter the bottom of the last bear market (2018-2019) we saw a steady rise in issuance events. At the top (June 28, 2019) of this bullish period there was a large issuance event (the two big spikes in July-August 2019 are due to USDT ETH issuance). It looks like the same is happening right now.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Institutional selling of crypto reaches longest streak since Feb 2018<\/em><\/strong><\/p>\n<p>This data serves as a warning that not all stablecoin issuance is a predictor of Bitcoin price rising because there are a number of factors that could account for mintings, such as institutional investors buying USDCfor a future purchase, or even altcoin and DeFi protocols preparing to integrate USDC pairs.<\/p>\n<p>In the long run, this shift has the potential to be beneficial for the crypto sector as audited projects like USDC are deemed more legitimate in the eyes of governments and regulators, but the sheer size of USDT&#8217;s $62.67 billion market cap and its ubiquity across crypto exchanges means that any attempt to de-Tether will likely bring pain to the market.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Monitoring the Tether (USDT) treasury for large&#8230;<\/p>\n","protected":false},"author":1,"featured_media":280255,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvNDUzMTQyM2MtNTFlYS00NWIzLWE1OTEtMTdjOWY4NjQ2OWRjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74863,74860,74877,75493,82350,73785,36041],"class_list":["post-280254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-decentralized-exchange","tag-stablecoin","tag-usd-coin","tag-markets","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/280254","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=280254"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/280254\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/280255"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=280254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=280254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=280254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}