Bitcoin
BTC$29 934.82

1.78%

Ethereum
ETH$2 007.56

1.61%

Tether
USDT$0.998816

0%

USD Coin
USDC$1.000095

-0.01%

Binance Coin
BNB$317.29

1.95%

XRP
XRP$0.417370

0.55%

Bitcoin exchanges just saw massive Tether stablecoin deposits


09 Apr 2021

#Tether

Is a broader rally forming for Bitcoin as sidelined capital makes its way onto exchanges? Nearly half a billion in Tether (USDT) inflows were recorded on April 8 across major Bitcoin (BTC) exchanges, based on Glassnode data. Considering that the inflows, the biggest since mid-March, coincided with a minor Bitcoin pullback, it indicates that buyers could be waiting to step in following BTC's price drop.

Is a broader Bitcoin rally brewing?

There are two major on-chain metrics that often signal a bigger Bitcoin rally is forming: BTC outflows and stablecoin inflows. Stablecoin inflows occur when traders deposit their sidelined funds to exchanges to buy back into cryptocurrencies. Meanwhile, large BTC outflows typically happen when high-net-worth investors withdraw their Bitcoin from exchanges to self-hosted wallets, which often suggests their intention to hold for the long term. 

In one hour, more than $476 million worth of stablecoin deposits were spotted on exchanges. According to Lex Moskovski, chief investment officer of Moskovski Capital, this demonstrates that there is no shortage of capital waiting to buy Bitcoin dips.

Moskovski said: "$476M USDT deposited to exchanges in an hour yesterday to buy the dip. Every time we dip, there is no shortage of the cash on sidelines, it seems."

Stablecoins are seeing massive growth

On April 2, Bitfinex chief technology officer Paolo Ardoino shared that the market capitalization of Tether, the largest stablecoin in the global market, had reached $42 billion. In the following six days, the market cap of USDT added another $2 billion, showing strong momentum. Since Tether is essentially digital dollars that can be easily converted into Bitcoin and other cryptocurrencies, this uptrend suggests that the amount of sidelined capital in the crypto market is growing.

Theoretically, when there is a lot of sidelined cash in the market, it represents significant firepower to drive a new rally of major cryptocurrencies like Bitcoin. When asked whether large USDT deposits could also mean that there’s a demand to cash out instead, Moskovski countered by saying that USDT deposited to exchanges typically represents an intention to buy. 

He explained: "Stable coins deposited on exchanges is for buying, mostly. Some part of it may be used for lending to leveraged traders. [...] Besides, it's bullish too as it highlights the demand for longs."

Meanwhile, data from CryptoQuant depicts a similar trend. For instance, the all exchanges stablecoins ratio, which divides all Bitcoin reserves on exchanges by stablecoin reserves, is rising once again, suggesting that investors could be reentering the market.


Related

Tether’s attestation report shows commercial paper holdings cut by 21%
Tether’s attestation report shows commercial paper holdings cut by 21%
Tether reveals plans to make Lugano the Bitcoin capital of Europe
Tether reveals plans to make Lugano the Bitcoin capital of Europe
USDT is minted for crypto as $1M bounty offered to unpick reserves
USDT is minted for crypto as $1M bounty offered to unpick reserves
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether promises an audit in months as Paxos claims USDT is not a real stablecoin
Tether promises an audit in months as Paxos claims USDT is not a real stablecoin
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Tether mints more coins to break $60 billion market cap
Tether mints more coins to break $60 billion market cap
New NordFX Savings Account: Investment Income Plus Trading Income
New NordFX Savings Account: Investment Income Plus Trading Income
Tether’s market cap hits $50B as stablecoin adoption grows
Tether’s market cap hits $50B as stablecoin adoption grows

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 62% 84 $29 934.82 1.78% -0.24% $570 155 412 455 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 57.6% 88 $2 007.56 1.61% -2.93% $242 675 827 692 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.8% 1 $0.998816 0% 0% $73 188 354 064 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 94.8% 1 $1.000095 -0.01% -0.04% $53 079 922 596 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 57.6% 88 $317.29 1.95% 5.85% $51 806 482 641 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 57.6% 89 $0.417370 0.55% -1.80% $20 176 973 309 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000299 -0.07% -0.21% $18 523 259 070 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 56.8% 91 $0.534723 0.58% -3.52% $18 041 039 601 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 60.8% 88 $51.51 2.60% -5.15% $17 476 863 461 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 60% 92 $0.085229 0.69% -4.68% $11 307 457 743 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 62% 87 $10.04 1.41% -8.59% $9 919 095 445 DOT 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 55.6% 90 $31.30 4.63% -10.31% $8 424 224 555 AVAX 7 days price change
13 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 60.4% 84 $29 951.16 1.77% -0.33% $8 284 578 704 WBTC 7 days price change
14 TRON (TRX) TRX TRON predictions 72.8% 53 $0.076605 3.56% 11.72% $7 411 701 223 TRX 7 days price change
15 Dai (DAI) DAI Dai predictions 93.2% 1 $1.000651 -0.01% 0.09% $6 532 948 110 DAI 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.