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Deposit a large amount of StableCoin to exchanges; Possibility of mutation?


Recent data show that about half a billion dollars of Tetra has entered large digital currency exchanges. Analysts predict this could be a sign of an uptrend in the market.

to the the report The Quinn Telegraph, and according to Glassnode data, nearly half a billion tetris (USDT) entered large exchanges on April 8 (April 19).

Tetra inflows to exchanges have been synchronized with partial bitcoin withdrawals. This shows that after the price of Bitcoin falls, buyers are waiting to enter the market and invest in it. It is worth mentioning that this volume has been unprecedented since the arrival of Tetra in exchange offices since mid-March.

There are two main intra-chain metrics that often represent an uptrend for bitcoin: Bitcoin outflows from exchanges and stable coin inflows to exchanges.

Deposit a large amount of StableCoin to exchanges;  Possibility of mutation?
Stable coin deposit in exchange offices

Stable coin inflows occur when traders deposit their marginal assets in exchange offices to repurchase digital currencies.

Meanwhile, large bitcoin outflows usually occur when investors with high net worth withdraw their bitcoins from exchange offices and transfer them to their host wallets. This often reflects their determination to maintain it for a long time.

In one hour, $ 476 million of StableCoin was deposited in exchange offices. According to Lex Moskovski, chief investment officer at Moskovski Capital, this shows that there is no shortage of capital to buy bitcoin when it falls. In this regard, Moskowski says:

Yesterday, $ 476 million in one hour was deposited in exchange offices to buy bitcoins at a drop in its price. It seems that every time Bitcoin falls in price, there is no problem with marginal liquidity.

On April 2, Paolo Ardoino, Bitfinex chief technology officer, tweeted that the market value of Tetra, the world’s largest stable coin, had reached $ 42 billion.

Six days later, another $ 2 million was added to the market value of Tetr, indicating a strong move.

Given that Tetra is essentially a digital dollar that can easily be converted to bitcoin and other digital currencies, this uptrend indicates that the volume of marginal capital in the digital currency market is growing.

On paper, when there is a lot of marginal money in the market, it indicates considerable power to drive a new uptrend for major digital currencies such as Bitcoin.

Asked if Teter’s deposit could also mean a demand for cash liquidation, Muskowski replied that Tetr’s deposits at exchange offices usually indicate an intention to buy.

He explained:

Stable coin deposits in exchange offices are often for purchase. Part of it may be used to lend to leverage traders. In addition, this event shows an upward trend because it highlights the demand for the long term.

CryptoQuant data, meanwhile, shows a similar trend. For example, the ratio of Stablecoins Ratio, which divides bitcoins stored in exchanges into stored coins (Stablecoins Ratio), is increasing again. This shows that investors can re-enter the market.

Deposit a large amount of StableCoin to exchanges;  Possibility of mutation?
The ratio of stable coins

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