On March 29, 2021, cryptocurrency statistics tracker CryptoQuant,.com tweeted that the total number of stablecoins held by exchanges’ wallets has reached the 10 billion mark.
All stablecoins holdings across all exchanges hit the all-time high, and now it's $10B.
— CryptoQuant.com (@cryptoquant_com) March 29, 2021
Planning For the Future
According to CryptoQuant, the new All-Time High record comes a few weeks after it had hit 8B, stating a significant rise at the start of the financial year 2021. At press time, the price of BTC/USD is lingering in between the $55K mark and $58K mark as we head into the 13th week of 2021.
The data provided by CryptoQuant shows signs that the market could be bearish as stablecoin investors continue to buy in on the fiat-backed cryptocurrencies. Over the weekend, there was a 500M $USDC deposit to Coinbase, which is one of the most significant inflows into an exchange this year. It could signify that institutions invest in stablecoins and encourage many other merchants to jump into the crypto-investment bandwagon.
According to one crypto enthusiast, the value of cryptocurrencies like BTC will be accelerating downwards as the year goes by. Due to the increase in the number of stablecoins held within exchanges, it seems traders are running towards fiat-backed cryptocurrencies to save themselves for the allegedly ‘incoming’ crypto winter.
Safety or Paranoia
Bullish investors are hopeful that BTC will hit 100K this year, while bearish backers advise crypto holders to strike when the iron is still hot and sell. DJ and cryptocurrency lover Scott Melker has been urging his Twitter followers to scour the market and add BTC to their portfolio. Melker tweeted that retail investors have the opportunity to earn big with the world’s most famous crypto.
Unchained podcast Laura Shin said that she is not experiencing FOMO after being severely criticized for not being a BTC holder. She added that she considers herself rich in many things that people do not have, but those exclude bitcoin, disputing the words ‘have fun staying poor.’
Crypto analysts are hopeful that the effects of the global pandemic COVID-19 and cryptocurrencies’ high demand will make the crypto’s valuations go high as the year continues. COVID-19 has forced the hand of many governments to print more money, encouraging inflation. As such, many traders are likely to invest in cryptocurrency to earn money during these challenging times.
According to market analyst John Dough, buying BTC is not spending money, but instead, it saves it. The analyst shared information on how to go about the cryptocurrency market in a tweet, specifying the period to be bullish. He believes the BTC price trend will continue rising and may as well have influenced a couple of people to buy the crypto.
Crypto fanatics such as Elon Musk have been continuously urging people to dig deep into their pockets to buy cryptocurrencies. The influence has spread to payment services, too, as Visa plans to start accepting payments in $USDC on their network this week.