Retail investors are buying Bitcoin, explains CryptoQuant CEO
In the days leading up to the recent Bitcoin price increase, stablecoins have gone crazy, showing unprecedented behavior.
On October 18, stablecoin transfers on exchanges reached record highs of 60,000 and 56,000 respectively, according to data provided by CryptoQuant. The resource information tracked USDT on Ethereum, PAX, USDC, TUSD, DAI, SAI, BUSD, HUSD and USDK. As for the total inflow of all stablecoins in terms of dollar value, no unusual trends were found.
Ki Young Ju, CEO of CryptoQuant, explained to Cointelegraph that although the inflows were not huge in dollar value, they indicated a bullish trend among retail investors:
„More deposits from more retail investors usually means that market sentiment is becoming bullish.
According to Ju, the high number of addresses and transactions in the market indicates that the inflows came from a large number of retail investors rather than a few large players. The assumption is that investors send stablecoins to exchanges when they intend to convert them into other crypto assets, mainly Bitcoins. In recent days, Tether has issued $450 million on the Tron network (TRX). The CTO of the company Paolo Ardoino has made it clear that the sum has been authorised, but not yet issued:
„PSA: the $300 million is an inventory replenishment on the Tron network. This is an authorized but not issued transaction, so this sum will be used as inventory for the next period issue requests“.
During 2020, Tether p’s market capitalization quadrupled, starting the year at $4 billion and rising to $16 billion at the time of writing. Meanwhile, Bitcoin’s reserves on major exchanges fell below BTC 2.5 million for the first time in two years.