📉 Sharp decline in stablecoin reserves on exchanges — a warning sign for the crypto market?
The chart from CryptoQuant shows the largest simultaneous decrease in stablecoin reserves (#erc20 ) on exchanges in recent months.
What does this mean?
💡 Historically:
Stablecoins are most often brought to exchanges for purchasing cryptocurrencies, especially $BTC and $ETH
Their increase on balances is a sign of potential demand.
👉 On the other hand, a sharp outflow may indicate:
📉 a decrease in investment interest;
📤 withdrawal of funds in anticipation of a correction;
🧯 a shift to a risk-off mode.
Current situation:
BTC is still holding above $114,000, but the decrease in the liquid "buffer" in the form of stablecoins creates tension.
If the trend continues, it may put pressure on prices in the short term.
The chart from CryptoQuant shows the largest simultaneous decrease in stablecoin reserves (#erc20 ) on exchanges in recent months.
What does this mean?
💡 Historically:
Stablecoins are most often brought to exchanges for purchasing cryptocurrencies, especially $BTC and $ETH
Their increase on balances is a sign of potential demand.
👉 On the other hand, a sharp outflow may indicate:
📉 a decrease in investment interest;
📤 withdrawal of funds in anticipation of a correction;
🧯 a shift to a risk-off mode.
Current situation:
BTC is still holding above $114,000, but the decrease in the liquid "buffer" in the form of stablecoins creates tension.
If the trend continues, it may put pressure on prices in the short term.
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BTC
116,941.34
-0.67%