How Bitcoin’s (BTC) Next Bull Run Could Have USDC ConnectionOctober 9, 2022
Bitcoin’s next bullish run might rely on USCD’s flow in crypto exchanges. That’s according to Ki Young Ju, CryptoQuant’s CEO. The financial experts stated that the stablecoin was crucial in Bitcoin’s future as several institutional investors had more USDCs than other stablecoins.
Young Ju said that organizations such as Fidelity, BlackRock, and Goldman Sachs held USDC. Nevertheless, the entities held nearly 94% of the balances in off-exchange wallets.
About Altering the Situation
Related developments show investors could have focused on Young Ju’s statement. The USDC exchange supply proportion data confirmed this narrative. CryptoQuant showed the stablecoin’s supply ratio has soared since September 30.
The metric recovered from the October 3retracement, soaring on its charts. While writing these lines, USDC had its exchange supply ratio at 0.0656. That indicated that some large wallet investors reserved more USDCs on exchanges over the past few days.
However, the latest uptick in this front might not be surprising. Whale Alert revealed that the case emerged after USDC worth $200 million flew into exchanges over the past 24 hours. Moreover, the whale tracking site observed that crypto exchanges like Huobi, Coinbase, FTX, and Binance, benefited from these transactions.
Surprisingly, these whale transfers affected the total exchange inflow, with the same declining since October 4. Glassnode data shows the Bitcoin exchange inflow volume stood at 31,942 during this publication.
Whale Alert added that $631.5 million worth of BTC joined Bitcoin while $1.2 billion left the marketplace. That translated to a negative $588 million netflow.
A Journey to $17K?
Meanwhile, Bitcoin’s current status could bring a new shift. CryptoQuant’s analyst Ghoddusifar opined that Bitcoin could plunge further on the charts, potentially hitting Delta price. According to his analysis, BTC formed a downside descending triangle formation. And that might trigger extended bearish sentiment.
Furthermore, BTC’s correlation with stocks remained a notable thing. Ghodduasifar trusts Bitcoin could plummet to $17K as the stock market sees bearishness. Nevertheless, 4hr chart showed that crypto could escape more downsides. The EMA suggested recovery possibilities for the bellwether crypto.
As the 20 Exponential Moving Average stays beyond the 50EMA, BTC could evade the 2.34% daily price dip. Still, market players should consider reduction possibilities, with the 20EMA maintaining downtrends.