According to the blockchain analytics firm CryptoQuant, coin addresses depositing stablecoins on derivative exchanges hit a new all-time high (ATH). This spike comes as the U.S. consumer price index (CPI) volatility rose only 0.1% in November, which was around 0.4% in the month before.
According to CryptoQuant’s analyst Woo Minkyu, “it would be indicating that buying pressure is getting stronger than ever OR more investors are getting involved in derivative trades.”
Furthermore, Federal Reserve (FED) chairman Jerome Powell mentioned another rate hike of 50 basis points (bps) in the Fed’s eighth and final meeting this year.
“The ultimate level of rates will need to be somewhat higher than thought at the time of the September meeting in the summary of economic projections.”Fed Chair Jerome Powell
Federal Open Market Committee (FOMC) meetings have, regularly, triggered bear financial and crypto markets in the past. Nonetheless, FOMC’s latest meeting — on Dec. 13 and 14 — according to CryptoQuant analyst Nino, made the prices crash again.
After the meeting, the global crypto market cap dropped to the $806 billion mark, at the time of writing, from around $870 billion at the time of the FOMC gathering, according to data provided by CoinMarketCap (CMC).
On the other hand, Nino found that the Long Term Holder (LTH) Spent Output Profit Ratio (SOPR) has increased despite all the uncertainty. This means that long-term bitcoin (BTC) holders — with a lifespan of more than 155 days — have sold their assets and made profits.
Bitcoin is currently trading at $16,748, down by roughly two percent in the past 7 days.