Skip to main content

USDC Exchange Reserves Rise As Investors Escape From Bitcoin

On-chain data shows the USD Coin exchange reserves have gone up recently, suggesting that investors may be exiting volatile markets like Bitcoin.

USD Coin All Exchanges Reserve Has Been Climbing Up Recently

As pointed out by an analyst in a CryptoQuant post, there have been signs of selling from Bitcoin investors for moving into USDC.

The USD Coin “all exchanges reserve” is an indicator that measures the total amount of the stablecoin currently present in wallets of all exchanges.

When the value of this metric goes up, it means investors are either depositing their USDC to exchanges right now, or shifting to the stablecoin from other cryptos.

Investors usually move into stablecoins like USD Coin when they want to escape from the volatility associated with cryptos like Bitcoin.

On the other hand, when the value of the reserve heads down, it implies the amount of USDC on exchanges is decreasing at the moment.

Related Reading | Extreme Fear Remains: Recapping What’s Behind The Crypto Market Panic

This kind of trend may be because of investors feeling now is an ideal point for jumping into volatile markets, or it may simply be due to holders withdrawing to personal wallets.

Now, here is a chart that shows the trend in the USDC all exchanges reserve over the last few months:

Looks like the value of the indicator has been going up in recent days | Source: CryptoQuant

As you can see in the above graph, the USD Coin all exchanges reserve has observed some uptrend in the last week.

The chart also shows the trend for USDC inflow to exchanges, which is another metric that measures the total amount of the stablecoin moving into centralized exchanges.

It seems like the inflows haven’t been abnormally high recently, but the reserve has still been experiencing upwards movement.

Related Reading | Mining Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The Mining Community

This could mean that the increase in the reserve isn’t just due to investors depositing their USDC, but also from them exchanging cryptos like Bitcoin for the stablecoin.

The trend may suggest that investors are leaving volatile markets for now, due to the current uncertain market conditions. This recent selling can prove to be bearish for the values of Bitcoin and other cryptocurrencies.

Bitcoin Price

At the time of writing, Bitcoin’s price floats around $19.1k, down 7% in the last seven days. Over the past month, the crypto has lost 35% in value.

The below chart shows the trend in the price of the coin over the last five days.

The value of the crypto seems to have declined over the last couple of days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

from NewsBTC https://ift.tt/Ls9Umrk
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl...
Post a Comment
Read more

FTX hacker reportedly transfers a portion of stolen funds to OKX after using Bitcoin mixer

On-chain activity suggests that the hacker has sent at least 225 BTC (4.5 million) to OKX so far. Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money.  A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hackers have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX so far.  1/ Myself and @bax1337 spent this past weekend looking into the FTX attacker’s deposits to ChipMixer. It appears they’ve likely been transferring a portion of the stolen FTX funds to OKX after withdrawing from CM So far we’ve accounted for at least $4.1m (255 BTC) sent to OKX pic.twitter.com/C46JZWtktn — ZachXBT (@zachxbt) November 29, 2022 According to ZachXBT, the FTX h...
Post a Comment
Read more

2 metrics signal the $1T crypto market cap support likely won’t hold

Despite the 8.5% weekly rally in cryptocurrencies, the lack of stablecoin premiums in Asia and futures markets activity shows buyers’ lack of confidence. Cryptocurrencies broke the $1 trillion market capitalization resistance on Oct. 26, which had been holding strong for the previous 41 days. Despite Bitcoin’s ( BTC ) modest 5.5% weekly gains, the aggregate value of 20,000 listed tokens increased by 8.5% between Oct. 24 and 31. Total crypto market cap, USD (in billions). Source: TradingView The cryptocurrency market was positively impacted by a 6.3% weekly rally in the Russell 2000 mid-capitalization stock market index. Some encouraging news accompanied the positive tailwinds from traditional markets. For instance,  55,000 BTC was withdrawn from Binance on Oct. 26, a record high. Typically, analysts consider the reduced number of coins deposited on exchanges a bullish indicator, as the immediate selling pressure eases. Moreover, exchange and wallet provider Blockchain.com ...
Post a Comment
Read more