Crypto Investors Pool Buying Power, Signal Bullish Market
For the crypto market to fully enter another epic bull run, you must be willing to purchase digital assets in large quantities. After a long stretch of abysmal performance, it looks like crypto investors are finally starting to believe in the market as they begin to pool their buying power to enter back into the market.
Crypto Buying Power At 6-Month Highs
An interesting development reported by the on-chain data tracker Santiment is the accumulation of Tether’s USDT stablecoin by crypto investors. As Santiment points out, the total amount of USDT being held on exchanges saw a notable uptick recently.
The figure which takes into account the total USDT held across the top exchanges went from only 17.6% of the stablecoin’s circulating supply to a whopping 24.7%. This 7.1% jump represents the growing interest of investors to get back into the market which could be bullish for prices.
As always, the large whales led the charge in this accumulation trend. The top 10 largest wallets saw their combined holdings rise from $7.23 billion to more than $9.42 billion in the same timeframe.
Ready to Buy Digital Assets
Now, when investors start upping their stablecoin holdings, it signals a readiness to begin buying digital assets once more and also shows the current buying power. As the amount of USDT held on exchanges has crossed over to a 6-month high, it could point toward the start of the largest rally seen in the market in 2023.
The accumulation being spread across large and small wallets alike shows that this is not a localized sentiment. Rather, most investors are seeing genuine chances for an upside and are looking to harness some of those gains for themselves.
Deploying Stablecoins and Rotating into Altcoins
When investors accumulate stablecoins as illustrated in the Santiment report, they often wait for a good time to deploy it. This is usually when the market experiences a notable crash, plunging the entire space into the red.
At this point, investors would be looking to get back into coins at a time when they look to be on discount. This is often when the market forms support and then prices begin to surge not too long afterward.
Mainly, these stablecoins will be deployed into the largest digital assets first such as Bitcoin (BTC) and Ethereum (ETH). Then once there are enough profits, investors will usually rotate into smaller cap coins, which is why altcoins tend to delay a bit in following Bitcoin’s recovery.
Hot Take: Bullish Market Ahead
The recent accumulation of Tether’s USDT stablecoin by crypto investors indicates a growing interest in reentering the market. With the amount of USDT held on exchanges reaching a 6-month high, it could be a signal for the start of a significant market rally in 2023. The accumulation trend is not limited to large investors but is seen across both large and small wallets, indicating widespread bullish sentiment. As investors deploy stablecoins and strategically rotate into altcoins, we can expect Bitcoin’s price to rally toward $29,000 and push the crypto market cap above $1.1 trillion once more.
By
By
By
By
By