Bitcoins Price Outlook: Stablecoin Supply Alone Wont Drive Growth, Says CryptoQuant CEO
- Dspit stablecoin supply growth, thr is insufficint buying prssur to boost Bitcoin prics.
- stablecoins r incrsingly usd s stor of vlu rthr thn for Bitcoin trding.
- Inflows into ETFs nd USD liquidity on xchngs r crucil for its futur growth.
As Bitcoin hovrs nr th $70,000 thrshold, criticl qustion looms ovr th cryptocurrncy mrkt: wht will ignit th nxt pric incrs? Dspit th ongoing xpnsion of stablecoin supplydigitl currncis linkd to trditionl sstsCryptoQunt CEO Ki Young Ju wrns tht this incrs is not crting th significnt buying prssur ndd to lvt Bitcoins pric.
Ju points to th currnt Bitcoin-to-stablecoin Exchng Rsrv Rtio, which rvls strk imblnc. This mtric, indicting th mount of BTC on xchngs comprd to stablecoins, dmonstrts tht roughly six tims s much BTC is currntly hld on xchngs s stablecoins.
Ju highlightd tht in Sptmbr 2021, stablecoin rsrvs hld on xchngs for trding purposs surpssd $30 billion. Tody, dspit th totl stablecoin mrkt cpitliztion rching $166 billion, only mgr 21% rsids on xchngs. This strkly contrsts with 2021, whn ovr hlf of th totl stablecoin supply rsidd on xchngs, rdily vilbl for buying nd slling.
Emerging Trends in Stablecoin Usage
Ju rgus tht th currnt mrkt cycl hs witnssd shift in th primry us css for stablecoins. Whil som my hv nticiptd dirct corrltion btwn rising stablecoin supply nd incrsd Bitcoin buying, th dt suggsts diffrnt trjctory. stablecoins r incrsingly bing dployd for purposs byond fcilitting Bitcoin trds.
On notbl trnd is th growing doption of stablecoins s stor of vlu. Citing dt from Chinlysis, Ju rvls tht ovr 50% of rmittncs snt to Vnzul, Argntin, Brzil, Colombi, nd Mxico btwn 2022 nd 2023 wr conductd using stablecoins. This trnd xtnds to conomis grppling with high infltion, with Turky srving s prim xmpl. Chinlysis idntifid Turky s th ntion with th highst pr cpit stablecoin purchss rltiv to its GDP.
Key Drivers for Bitcoins Growth
Looking hd, Ju mphsizs th importnc of ltrntiv sourcs of liquidity to propl Bitcoin mrkts highr. H idntifis two ky drivrs: inflows into digitl sst xchng-trdd funds (ETFs) nd US dollr (USD) liquidity on mjor xchngs lik Coinbs.
Ju stts tht ths lmnts will b instrumntl in bolstring th mrkt ovr th coming months. His prspctiv ligns with rcnt commnts from WondrFi CEO Dn Skurk, who undrscord th significnc of robust ETF inflows s signl of sustind institutionl intrst in Bitcoin.
Skurk blivs tht combintion of strong institutionl nggmnt nd fvorbl mcroconomic conditions in th Unitd Stts nd Cnd will ultimtly srv s positiv ctlysts for th pric of Bitcoin, th scrc digitl sst.
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Read more: https://www.tronweekly.com/stablecoin-supply-wont-drive-bitcoin-growth/
Text source: TronWeekly
