The cryptocurrency market is preparing for another rally, as evidenced by the accumulation of $25 billion in stablecoins on exchanges. About it on Twitter informed head of CryptoQuant Ki Yong-ju.
Everyone is talking about bearish things, but most of them haven’t left the crypto market. They’re just waiting for the bottom.#Bitcoin marketcap decreased by -70% from the top while stablecoin went down by just -11%. pic.twitter.com/dhgDzi9g2A
— Ki Young Ju (@ki_young_ju) June 30, 2022
According to him, the volume of stablecoins on exchanges is already half the value of bitcoin reserves. However, when exactly the market will move into the phase of buying cryptocurrencies remains unclear. Zhu noted that despite the collapse in the market capitalization of bitcoin (a drop of 70%), the capitalization of stablecoins decreased by only 11%.
However, users doubted that the declared figure is those who are waiting for the Bitcoin rally. For example, some users notedthat the concentration of stablecoins on exchanges may be the result of high interest rates on deposits.
Analysts at Kaiko have previously warned that cryptocurrency exchanges could face a domino effect if market prices do not recover. The researchers note that as market quotes fall, crypto exchanges are forced to further change the structure of their business in order to survive.
At the same time, the founder of the FTX crypto exchange, Sam Bankman-Fried, said that some crypto exchanges are already “secretly insolvent.” At the same time, he added that individual players in the crypto market “went too far,” and supporting them is “impractical due to a significant hole in the corporate account.” However, he declined to say what kind of trading floors in question.
Meanwhile, Bitcoin is trying to find support and form a higher low after a bullish breakout of the short-term resistance line.
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