- The total stablecoin foreign exchange reserves also increased steadily.
- At press time, whales held nearly 55% of the total stablecoin supply.
Bitcoin [BTC] bounced back from range-bound price action this week, posting impressive gains of 9.61%. According to CoinMarketCap, as of this writing, King Coin was consolidating around its 2021 high of $70,000.
As tension returns to the market, expect more volatility and price increases in the coming week.
Is there another pump coming?
JA Maartunn, a verified writer at on-chain analytics firm CryptoQuant, pointed to the largest USDC transfer to an exchange in history, totaling $1.4 billion. This event overshadowed the previous Bitcoin peak in January 2023, which saw $1.3 billion deposited in USDCs.
Source: CryptoQuant
A significant increase in stablecoin deposits typically precedes sharp increases in the price of Bitcoin and is interpreted as a bullish signal. In fact, the above-mentioned USDC transfer in January 2023 also led to a recovery from the coin’s cyclical low at $16,800.
Traditional investors use stablecoins as a medium to enter the cryptocurrency market and use them to purchase other volatile and high-yield coins. Additionally, the latest transfer was made on Coinbase – a popular Bitcoin purchase among US institutional investors.
Whales are increasing the supply of stablecoins
AMBCrypto conducted further research and found a sharp increase in total stablecoin foreign exchange reserves in recent weeks. According to CryptoQuant, there were more than 20 billion stablecoins in exchange wallets at press time, the highest since March 2o23.
Buying pressure was also evident in the ever-growing stablecoin holdings of whale investors.
According to AMBCrypto's analysis of Santiment's data, wallets worth more than $5 million held nearly 55% of the total stablecoin supply at press time, up from 51.88% on March 20.
Source: Santiment
Read BTC price prediction 2024-25
2024: The Year of USDC Resurgence?
Speaking of USDC, the fortunes of the second-largest stablecoin have changed dramatically in 2024.
The $1-pegged cryptocurrency has seen its market capitalization rise 30% year-to-date to $26 billion, after suffering heavily from the strain of the U.S. banking crisis last year.
Source: CryptoQuant
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