Sign In with Google
Sign In with Facebook
On-chain Analysis Foresees a Potential 'Big Bull Move' for Bitcoin
There are data-supported predictions of a potential rejuvenation in Bitcoin's (BTC) prices, as the buying power of stablecoins re-emerges. CryptoQuant, an on-chain analytics platform, presents insights that stablecoin supply metrics are mimicking precedented bullish market trends.
The Bullish Perspective for Bitcoin Price Based on Stablecoin Metrics
The analysis by CryptoQuant suggests that Bitcoin is currently at its prime accumulation phase, according to its stablecoin ratio metric. Historically, this stage has always heralded a favourable influence on the price movement of BTC.
Market analyst and on-chain observer Cole Garner notes that the ratio of stablecoins to Bitcoin on the Bitfinex exchange, when stated in USD, has reached a historical high since 2022. This surge comes as the crypto markets are rallying from the severe blow after the FTX slump. Such conditions had resulted in a 70% surge in Bitcoin's price in Q1 alone.
Garner's tweet on July 27 pinpointed: "Advance of every big bull move in Bitcoin always coincides with a surge in Bitfinex's Bitcoin to stablecoins ratio. It is a significant precursor."
Stablecoin Supply Ratio (SSR) Adds to Bullish Prospects
Another bullish inference comes from the Stablecoin Supply Ratio (SSR) - the ratio of Bitcoin's market cap to the market cap of all stablecoins. Despite Bitcoin's price recovery throughout 2023, SSR has remained dormant. This suggests that key players may be biding their time, which supports the argument for future price increases, according to CryptoQuant contributor SimonaD.
She elaborates in a Quicktake market update from the platform on July 26: "Since March, we have witnessed a decrease in trading volume, stagnation in SSR, yet an increase in the circulating supply of the stablecoin, Tether (the stablecoin with the highest trading volume), followed by a surge in Bitcoin's prices."
Significant Activity Amongst Bitcoin Whales
As observed and reported earlier by Cointelegraph, big players are showing signs of reshuffling at the current price levels. Notably, Bitcoin whales accounted for more than 40% of BTC inflows into exchanges, which is the highest in over a year.
Data analytics firm, Glassnode, who first reported on this trend, noted in a subsequent report: "Since May 30, there has been a decline of -255k BTC in the total whale balance, looking solely at coins moving between whale entities and exchanges."
