$3 Billion Stablecoin Potential Set Aside in Crypto Market Could Soon Enter With Bullish Movement
This week marked some major progress for Bitcoin as it broke the $4,200 resistance level, pushing up above $5,000 in the matter of an hour. The rally has been lauded by many proponents as the end of the bear market that has been taking down Bitcoin and altcoins for over a year. New capital is expected to enter the market with this momentum behind it, but the $3 billion in capital that has remained on the sidelines could easily go in the market now for Bitcoin and altcoins.
Ever since Bitcoin managed to make a break out of the bearish pattern, crypto bulls have been on fire with excitement, and even the most bearish analysts have appeared optimistic.
I keep hearing that we need new money to get back to ATH, but think about all the money parked in Tether and other stable coins. These are people who never actually left #crypto.
Also an interesting metric to watch.
— Jonathan Habicht🔥 (@HabichtJonathan) April 4, 2019
A bullish situation that is being brought to the table is the possibility of up to $3 billion in stablecoins that appear to be holding steady on the sidelines for now. Based on information from Jonathan Habicht, the founder of Blockfyre, it looks like these funds could reenter the market, though he suggests that the investors in the stablecoins have not ever left.
Matt Greenspan, a well-known senior market analyst from eToro, supported the claims of Habicht, saying that this amount could just be waiting right now.
Nearly $3 billion ready to flow into BTC and alts. https://t.co/kWTNCtbyZM
— Mati Greenspan (@MatiGreenspan) April 5, 2019
Even with the $2 billion of over $3 billion that is allegedly parked with Tether, there are some consumers that wonder if there’s actually anything parked here at all. These doubters have said that the capital actually flows in and out of coins throughout the crypto market.
One trader commented on the post from Habicht, saying that the volumes of Tether trade over the market cap by five times a day. With that considered, it is possible that Tether is constantly changing handles with other cryptocurrencies in the industry, which means that there is a chance that the $3 billion in question may never reach Bitcoin and altcoins simultaneously.
In recent news, the trading volume of the entire crypto market has been questioned, as some analysts believe that wash trading is taking place constantly. Still, the idea that stablecoins will be disposed of to take the side of Bitcoin and altcoins is highly unlikely. After all, there are many investors that turn to these resources at even the smallest sign of a bear market returning.
Live Bitcoin (BTC) Price:
1 BTC/USD =$44,376.8432 change ~ -6.82%