TL;DR
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We have now some excellent news, and a few ‘meh, could possibly be higher’ information.
In accordance with CryptoQuant, long run holders are gobbling up Bitcoin at their quickest fee in over a yr.
Buuut, the dearth of stablecoin liquidity may dampen any ensuing worth rallies.
Cool. What does that each one imply?
Let’s begin with the straightforward bit: long run holders shopping for up Bitcoin reduces the obtainable provide and helps to push costs up over time.
It additionally sends a sign to the remainder of the market saying “this is likely to be a superb worth to get in at” — doubtlessly compounding the availability crunch and pushing costs even increased.
As for low stablecoin liquidity, that simply means there’s not as many stablecoins sloshing round on exchanges (prepared for use).
And at this cut-off date, the vast majority of stablecoins on the market are used to do one factor:
Purchase extra crypto.
So when costs begin to tick up, ideally you need to see as many stablecoins sitting on exchanges and able to be traded as potential.
The extra stablecoins there are to commerce, the larger the potential shopping for frenzy (and ensuing worth pump).
Alright, now you already know!
