Bear Run: Stablecoin Volumes Show The Real Picture, Here’s Why
Although there is a lot of buzz around the falling prices and a prolonged crypto winter, the numbers do not really seem to be adding up. From its peak of $68,000, Bitcoin has so far dropped by around 70% and chances are it could drop further.
Bitcoin Bottom Anticipation
While traders are anticipating a Bitcoin bottom, some of them appeared to have left the market thanks to falling prices. However, statistics reveal the reality is different from what it seems with the ongoing bear market sentiment. A majority of traders have not left the crypto market and are just waiting for the Bitcoin bottom.
Ki Young Ju, CEO of CryptoQuant, said everyone is talking about bearish trends but most of them haven’t left the crypto market. In what could be an eye-opener for many, the Bitcoin market cap decreased by 70% from the top while stablecoins went down by just 11%.
In fact, there are as many as $25 billion worth stablecoins lying in crypto exchanges currently. Ju further said,
“Stablecoins sitting in exchanges are now worth half of Bitcoin reserve. We have $25 billion loaded bullets which can make crypto asset prices go up. The question is when, not how.”
Bitcoin Price Momentum In Bear Market
As of writing, Bitcoin is trading at $19,516, down 2.95% in the last 24 hours, according to CoinMarketCap. After trading above the $20,000 for close to a week, BTC again dropped below the mark on Wednesday.
Meanwhile, Bitcoin’s price could for the first time ever close this month below the 200 weekly moving average. In the last three consecutive weeks, Bitcoin created a record by closing below the key metric.
Following the historic crash of Terra network last month, several countries proposed tightened regulations for crypto space. Regulatory action is being planned especially for stablecoins. To prevent Terra-like events in future, the United Kingdom came forward to propose safeguards to protect stablecoins from losses.
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