Key facts:
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Traders often take USDT to exchanges to exchange it for volatile cryptocurrencies.
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The price of Bitcoin fell below $58,000 early this morning.
Stablecoin inflows into exchanges are showing challenges for the price of the leading digital currency, bitcoin (BTC), to rise.
“When we look at the number of stablecoins entering exchanges, we see that we are close to all-time lows,” a report highlights. shared by data provider CryptoQuant, made by the analyst known as theKriptolik.
This can be seen in the following chart. It shows the price of Bitcoin in white and the inflows of Tether (USDT) into exchanges in orange. Since the latter is the stablecoin with the largest market cap, it serves as an indicator of the movement of stablecoins in general.
Comparison of Bitcoin price and stablecoin inflows on exchanges. Source: CryptoQuant.
The specialist explains that, typically, after sharp drops in the price of bitcoin, investors who see it undervalued send large amounts of stablecoins to the wallets of exchanges of cryptocurrencies to buy BTC. Consequently, he clarifies that these movements drive the price of bitcoin.
However, Despite the recent setback of bitcoinhigh levels of stablecoin revenue are not yet exhibited in the marketAs seen below, its price rose from $65,000 to $57,000 in the last week.
Bitcoin price in recent days. Source: TradingView.
“These data suggest that investors do not yet believe that the decline is over,” the analyst believes.
The stablecoins are cryptoassets that maintain the same price as fiat currencies, mainly the US dollar (USD). Normally, these are used to acquire volatile digital currencies such as bitcoin. Therefore, their movements in the exchangeThey serve as an indicator of market behavior.
A key month for bitcoin is approaching
As reported by CriptoNoticias, ecosystem actors such as the Coinbase exchange maintain that the Lack of bullish narratives currently affects the price of bitcoin. Among the reasons for this is the northern hemisphere summer, a season that is usually negative for the markets due to the interruption of economic activities.
However, in September, the season will end and the reduction of interest rates In the United States, monetary policy is motivating the demand for risk assets. Therefore, with such a panorama, the appetite of investors for bitcoin could change.
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