contributor
Posted:
- USDT supply jumped by 0.37%, aligning with Bitcoin’s 2% decline from the previous day.
- If confidence in a recovery fades, massive capitulation might follow.
During the recent market consolidation, stablecoins have surged. Since the 9th of September, USDT and USDC market cap increased by $1.153 billion—USDT up $410M and USDC up $743M.
This coincided with Bitcoin’s [BTC] rise to $60.5K, a 12.04% gain in a week.
Hence, this capital influx was crucial to Bitcoin’s surge. Now, with the market retracing into a bearish pullback, are investors confident in a price recovery?
Increase in USDT supply
While Bitcoin saw a 2% decline on the 16th of September from the previous day, USDT circulating supply jumped from $54.14B to $54.34B.
This increased liquidity may support potential Bitcoin price increases in the coming days, assuming there is less reliance on USDT as a safe haven.
Surprisingly, the chart below presents a sharp contrast to this expectation.
Source : Glassnode
The tremors have led to panicked stakeholders, shown by consecutive negative flows. Investors may have shifted capital into USDT for safety while Bitcoin’s price fell, reflecting a liquidity shift rather than a direct correlation.
Put simply, the jump in USDT supply did not correlate with increased Bitcoin demand; other factors might be at play.
On the 16th of September, the Tether treasury minted 1 billion USDT tokens, causing the sharp 0.37% rise in its supply.
While this could suggest confidence in price recovery, it may also reflect liquidity demand or market hedging, not direct optimism.
Therefore, other dynamics must be considered to gauge true confidence.
Stablecoin outflows could spark capitulation
The chart shows many Bitcoin holders are in profit, which is bullish but may signal a market top as high NUPL could lead to profit-taking and potential corrections.
Source : Bitcoin Magazine Pro
Conversely, rising USDT outflows could turn NUPL negative, indicating unrealized losses and possible selling to break even.
The exact position will become clearer after the FOMC meeting. If bulls act decisively, profit holders might maintain their gains.
However, nearing the $55K range could trigger increased USDT outflows, signaling potential capitulation.
Read Bitcoin (BTC) Price Prediction 2024-25
For context, on the 3rd of September, a massive $230M USDT flowed out of exchanges on the same day Bitcoin dropped nearly 3%, following a 4% rise the previous day.
This indicated that investors were likely shifting capital to safety, causing BTC to plunge below $54K in just three days. If this trend holds, BTC could retrace back to the same support level again this time.
contributor
Posted:
- USDT supply jumped by 0.37%, aligning with Bitcoin’s 2% decline from the previous day.
- If confidence in a recovery fades, massive capitulation might follow.
During the recent market consolidation, stablecoins have surged. Since the 9th of September, USDT and USDC market cap increased by $1.153 billion—USDT up $410M and USDC up $743M.
This coincided with Bitcoin’s [BTC] rise to $60.5K, a 12.04% gain in a week.
Hence, this capital influx was crucial to Bitcoin’s surge. Now, with the market retracing into a bearish pullback, are investors confident in a price recovery?
Increase in USDT supply
While Bitcoin saw a 2% decline on the 16th of September from the previous day, USDT circulating supply jumped from $54.14B to $54.34B.
This increased liquidity may support potential Bitcoin price increases in the coming days, assuming there is less reliance on USDT as a safe haven.
Surprisingly, the chart below presents a sharp contrast to this expectation.
Source : Glassnode
The tremors have led to panicked stakeholders, shown by consecutive negative flows. Investors may have shifted capital into USDT for safety while Bitcoin’s price fell, reflecting a liquidity shift rather than a direct correlation.
Put simply, the jump in USDT supply did not correlate with increased Bitcoin demand; other factors might be at play.
On the 16th of September, the Tether treasury minted 1 billion USDT tokens, causing the sharp 0.37% rise in its supply.
While this could suggest confidence in price recovery, it may also reflect liquidity demand or market hedging, not direct optimism.
Therefore, other dynamics must be considered to gauge true confidence.
Stablecoin outflows could spark capitulation
The chart shows many Bitcoin holders are in profit, which is bullish but may signal a market top as high NUPL could lead to profit-taking and potential corrections.
Source : Bitcoin Magazine Pro
Conversely, rising USDT outflows could turn NUPL negative, indicating unrealized losses and possible selling to break even.
The exact position will become clearer after the FOMC meeting. If bulls act decisively, profit holders might maintain their gains.
However, nearing the $55K range could trigger increased USDT outflows, signaling potential capitulation.
Read Bitcoin (BTC) Price Prediction 2024-25
For context, on the 3rd of September, a massive $230M USDT flowed out of exchanges on the same day Bitcoin dropped nearly 3%, following a 4% rise the previous day.
This indicated that investors were likely shifting capital to safety, causing BTC to plunge below $54K in just three days. If this trend holds, BTC could retrace back to the same support level again this time.
cost generic clomiphene without rx cost clomiphene without insurance where to get clomid without dr prescription clomiphene challenge test can you buy generic clomiphene without a prescription cost cheap clomiphene without insurance can i purchase clomiphene prices
This is the tolerant of advise I find helpful.
The thoroughness in this section is noteworthy.
cost azithromycin 250mg – ciprofloxacin us buy generic metronidazole online
buy semaglutide without prescription – oral semaglutide 14mg order cyproheptadine 4mg generic
motilium cheap – buy generic flexeril flexeril 15mg generic
brand augmentin 1000mg – atbioinfo buy acillin sale
buy nexium 40mg generic – https://anexamate.com/ buy generic esomeprazole for sale
cheap coumadin 5mg – blood thinner buy generic losartan
meloxicam 15mg pill – https://moboxsin.com/ order meloxicam 7.5mg for sale
deltasone generic – aprep lson order deltasone 20mg online
best ed pill – fast ed to take online ed medications
amoxicillin price – order amoxil without prescription buy generic amoxicillin
buy diflucan 100mg online – https://gpdifluca.com/# forcan uk
buy generic lexapro – https://escitapro.com/ buy escitalopram 10mg online cheap
order cenforce sale – https://cenforcers.com/ cenforce 50mg without prescription
tadalafil without a doctor’s prescription – https://ciltadgn.com/ how long does cialis stay in your system
cialis professional vs cialis super active – site ordering tadalafil online
where can i buy zantac – https://aranitidine.com/ purchase zantac for sale
buy viagra cheap online no prescription – https://strongvpls.com/# cheap viagra paypal payment
More posts like this would prosper the blogosphere more useful. cenforce 100 mg mejor sitio seguro
Thanks on putting this up. It’s understandably done. https://buyfastonl.com/furosemide.html
I’ll certainly bring back to skim more. https://ursxdol.com/clomid-for-sale-50-mg/
I’ll certainly return to review more. prohnrg
I’ll certainly carry back to read more. https://ondactone.com/product/domperidone/
This is a keynote which is forthcoming to my fundamentals… Myriad thanks! Unerringly where can I notice the connection details an eye to questions?
buy plavix without prescription
I couldn’t resist commenting. Adequately written! http://www.01.com.hk/member.php?Action=viewprofile&username=Tllnck
forxiga 10 mg price – https://janozin.com/# buy forxiga generic
orlistat drug – janozin.com orlistat 60mg us
I couldn’t weather commenting. Adequately written! https://www.forum-joyingauto.com/member.php?action=profile&uid=49486