• CryptoQuant’s stablecoin ratio metric is suggesting a “big bull move” for Bitcoin price in the coming days.
• On-chain data indicates that big players are stocking up on stablecoins and waiting for better prices to make their entry, leading to an increase in the Bitcoin price.
• Bitcoin whales have also made “noteworthy shifts” in their positions, indicating bullish sentiment.
Bitcoin Bull Run Next?
An analysis from on-chain analytics platform CryptoQuant shows that a “major leading indicator” for Bitcoin is pointing towards a classic repeat of bullish BTC price phases. This comes as the stablecoin buying power returns, causing the Bitfinex stablecoin ratio to reach its highest levels since late 2022 when markets had already taken a dip due to the FTX meltdown.
Stablecoin Supply Metrics
CryptoQuant’s data also reveals that when denominated in United States dollars, the stablecoin supply metrics show signs of repeating historical bull market patterns. The Stablecoin Supply Ratio (SSR) – which is calculated by dividing the Bitcoin market cap by the total market cap of all stablecoins – has remained low throughout the 2023 BTC price recovery which leads experts to believe that large investors may be waiting for better prices before entering into positions.
Noteworthy Shifts Among Bitcoin Whales
On-chain analyst Cole Garner notes that when looking at Bitfinex’s stablecoin ratio, there has been every indication of a “big bull move” taking place soon and this could lead to more positive BTC price action. Additionally, crypto commentator SimonaD suggests that given recently seen increases in circulating supply of Tether (the largest stablecoin by volume) paired with an increase in Bitcoin’s price, it can be assumed that large investors are stocking up on funds and preparing to enter into better positions once pricing becomes more favourable. Finally, noteworthy shifts among bitcoin whales have also indicated bullish sentiment which supports these claims further.
Conclusion
Overall, it seems like major developments within the cryptocurrency space suggest we could be headed towards another bullish phase for Bitcoin soon as large investors prepare to capitalise on better prices and bitcoin whales indicate bullish sentiment across markets. As always however it is important to remain cautious and conduct your own research before making any decisions as investing always carries some level of risk associated with it so it may not be suitable for everyone involved.
References
• Suberg W., (2021). ‘Bitcoin Bull Run Next? Bitfinex Stablecoin Ratio ‘Blows Up’ In 2023′. Retrieved July 28th 2021 from https://cointelegraph.com/news/bitcoin-bull-run-next-bitfinex-stablecoin-ratio-blows-up-in-2023