The Influx of Stablecoins to exchanges Will Continue the Bitcoin Rally
Kataryna Kovtun July 29, 2020
The influx of stablecoins to exchanges speaks of solid foundations for the continuation of the Bitcoin rally
Over the past year, Bitcoin has failed several times, trying to stay above the $ 10,000 mark. This time it may be different, writes Coindesk, citing data from the blockchain analysis company Chainalysis.
According to Market Intel, the inflow of bitcoins to exchanges on July 27 increased from 68,970 BTC to 130,039 BTC (the largest daily increase in 134 days) amid a skyrocketing price increase. Investors usually transfer bitcoins to exchanges when they lack confidence in the rally or resources for long-term storage of coins and want to cash out their investments.
It can be argued that an additional offer has appeared on the exchanges. On the other hand, buying pressure represented by the influx of the popular stablecoin Tether (USDT) has also intensified.
The inflow of Tether on July 27 increased from $ 440 million to $ 726 million.
«Bitcoin demand entered exchanges for $ 726 million to balance $ 1.3 billion BTC sale», ― noted Philip Gradwell, chief economist at Chainalysis.
While the influx of stablecoins is less than the influx of bitcoins, there are other ways to buy cryptocurrencies.
“Fiat will also be used, so it can be assumed that this rally has momentum,” — Gradwell wrote.
Thus, buying pressure can be strong enough to absorb the additional supply that enters the exchanges, and bitcoin can gain a foothold above $ 11,000.
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