As the upward trend in October continues, the increase in stablecoin liquidity and large Bitcoin (BTC) transactions pave the way for a potential price rally.
Record Stablecoin Liquidity and Increase in Bitcoin Transactions May Create Volatility in BTC Price
The increase in the liquidity of stablecoins, which play an important role in cryptocurrency trading, indicates significant capital waiting to be used.
Likiditesi Stablecoin Record
Data from CryptoQuant shows that stablecoin liquidity reached $169 billion as of the end of September, marking a 31% year-to-date (YTD) increase.
Tether (USDT) leads the market, commanding 71% of the stablecoin market share, with a $28 billion increase in market capitalization to nearly $120 billion. Circle’s USDC rose 44% to $36 billion, holding 21% of the market share.
Stablecoins, often backed by fiat currencies such as the US dollar, offer price stability in the volatile crypto market.
The increase in stablecoin supply reflects increasing fiat deposits, indicating an influx of capital into the cryptocurrency ecosystem. The vast majority of spot and futures transactions are placed against stablecoin pairs, meaning increased liquidity could lead to an increase in crypto purchases.
Impact of Stablecoin Liquidity on Bitcoin
There is a historical correlation between stablecoins held on exchanges and Bitcoin price increases. Since the beginning of 2023, the total amount of USDT on exchanges has increased by 146%, from $9.2 billion to $22.7 billion.
Even though Bitcoin’s price remains stable, increasing stablecoin balances indicate an accumulation of capital ready to be released.
“Larger stablecoin balances on exchanges are positively correlated with higher Bitcoin and crypto prices,” said Julio Moreno, director of research at CryptoQuant.
Increased stablecoin liquidity could support a Bitcoin rally, especially as historical trends point to significant price movements after mid-October.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, Twitter our account and Youtube Follow our channel now! Moreover Android ve IOS Start live price monitoring now by downloading our applications!
Source: https://www.bitcoinsistemi.com/cryptoquant-verilerine-gore-stablecoin-likiditesi-rekor-seviyeye-yukseldi-bu-ne-anlama-geliyor-iste-detaylar/
