MEXCAnalyst Signals Buying Pressure as $1.4 Billion Worth of USDC Flow to Coinbase
Highlights
- The largest transfer of USDC was recorded on Coinbase.
- Assets worth $1.4 billion were moved to the exchange.
- Analysts draw lines with past movements signaling more inflows.
The recent positive run in the cryptocurrency market has sparked a transfer of $1.4 billion worth of USDC to digital asset exchange, Coinbase.
According to on-chain crypto analytics firm CryptoQuant, the highest inflow of the stablecoin USDC was recorded with $1.4 billion worth of the asset on Coinbase. Although details of the transfers remain sketchy, analysts point to potential bullish pressure following past trends and the present market surge. The crypto market maintained positive form this week on the heels of institutional inflows following the approvals of spot Bitcoin ETFs.
Recovering from a slight correction, Bitcoin price pierced through $70,000 and is up 9.6% this week showing renewed investor confidence. Crypto users point to recent developments projecting new highs for the market.
Record USDC Transfer to Coinbase
The record $1.4 billion transfer to Coinbase could spark a new round of buying pressure. This is because users’ stablecoins are used to purchase cryptocurrencies like Bitcoin and Ethereum. These assets are described as a gateway between traditional finance and web3 because of its peg to the dollar.
Market analyst, maartunn, argued that historically, deposits could increase buying pressure while noting past flows to the exchange.
“Several hours ago, the largest influx of USDC ever recorded occurred, with over $1.4 billion of USDC deposited on Coinbase. This sizable deposit signals potentially significant buying pressure, as these stablecoins can be utilized to purchase bitcoin.”
Incoming Bullish Momentum
On Jan 9, 2023, Coinbase recorded a $1.3 billion inflow of USDC which sparked a price boost from Bitcoin’s low $16,800 in that cycle. The flow of stablecoins led to a new price rally taking Bitcoin out of the woods as traditional investors increased their exposure to the market.
On January 9th, 2023, a deposit of $1.3B USDC happened right before the price surged from the cycle low at $16800.https://t.co/KmMo3yx218 https://t.co/cVHgfvu2F9 pic.twitter.com/zdeDjaAJNI
— Maartunn (@JA_Maartun) March 29, 2024
Maartunn explained on X (formerly Twitter) that investigations are up to determine the cause of transfer and pledged to update users. “involved. It is crucial to determine whether this transfer is internal or not, meaning it did not occur within an exchange. I will keep you informed as I gather more information,” he wrote.
This trend is contrary to the movement of assets to exchange occasioning a major sale. When bulls move large crypto assets to exchanges, a major sale could be imminent while off exchanges are a bullish indication.
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