Analysis firm IntoTheBlock reports a significant increase in the market value of stablecoins, indicating that the purchasing power of crypto market participants has increased. This situation could signal an increase in investments in Bitcoin and altcoins.
After a year and a half of decline, the total value of all stablecoins is preparing to rise for the second time in December. IntoTheBlock sees this trend as a positive sign for crypto liquidity and indicates that the trading capacity of market participants with stable and predictable assets is increasing.
IntoTheBlock is examining Bitcoin’s net flows from exchanges, a metric that tracks the inflows and outflows of Bitcoin on centralized exchanges. This week, Bitcoin witnessed a net inflow of $860 million, the highest figure in the last nine months.
Despite historical data that usually follows large inflows into exchanges with a 5% price drop, it is reported that whales accumulated 22,000 BTC in the week when Bitcoin’s price fell to $41,000. This accumulation highlights the confidence of significant asset owners in the long-term value of Bitcoin, despite short-term market fluctuations.
According to the latest data, Bitcoin is trading at $42,248, experiencing a 1.70% drop in the last 24 hours. Ethereum (ETH), on the other hand, faced high transaction fees throughout the week, affecting the supply of the second-largest cryptocurrency.
In summary, the increase in the market value of stablecoins indicates a positive change in crypto liquidity and provides increased purchasing power to market participants. Despite the recent exchange net flows for Bitcoin and Ethereum’s fee-focused supply dynamics, the crypto market continues to be dynamic, and whales express their confidence in the long-term potential of significant assets.