An increase in exchange-wallet balances holding stablecoins in early October neutralised the risk of a pause in Bitcoin’s price rise after surpassing the $12,000 mark. In an interview with Forbes, CryptoQuant CEO Ki Young Ju said.
According to the expert, at that moment whales began transferring part of their coins to exchanges for subsequent sale. Subsequently, a larger flow of stablecoins directed toward buying Bitcoin proved more significant.
CryptoQuant’s head noted that stablecoins like Tether are widely seen as a more convenient form of capital storage than fiat. Going forward they ease the purchase of cryptocurrencies. For this reason, inflows of stablecoins from personal wallets to exchanges typically signal rising bullish interest.
“We see an increase in transfers of stablecoins by users to exchange deposits as potential pressure to buy. Historically, this has always preceded a rally in the price of the first cryptocurrency”, Ju said.
In his view, despite Bitcoin’s strong technical position after hitting $18,000, the growth in funding rates on leading Bitcoin futures exchanges is worrisome.
On Binance Futures and Bybit, this metric reached 0.15% and 0.074%, respectively, with an average of 0.01%. This may indicate an overheating of the current uptrend.
Exchanges use the funding rate to achieve balance in the market. When the divergence above the equilibrium value is strong, the probability of taking profits increases.
According to CryptoQuant, last weekend whales on Coinbase increased the volume of sell orders.
Ju said that if whale pressure on Coinbase leads to Bitcoin consolidation and funding rates continue to rise, the odds of a near-term move to a correction will rise noticeably.
In late October, the issuer of Tether authorized the issuance of 450 million new USDT tokens over two days. This occurred as Bitcoin price reached $13,000.
In early November, the aggregate value of USDT in circulation exceeded $17 billion for the first time. At the time of writing, this figure has risen to has risen to $18.65 billion.
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