Major Stablecoin inflows on exchanges indicating an upcoming Bitcoin rally
Bitcoin is currently trading at $57,979 as of 12:49 p.m. IST, down by 3% in the last week. There were slight gains in BTC on Thursday amidst signs of further mainstream adoption of cryptocurrencies. The world’s largest financial custodian, BNY Mellon announced that it will serve as the service provider for a Bitcoin ETF being offered by First Trust Advisors and SkyBridge Capital. State Street, one of the oldest banks in the U.S announced that it will be providing infrastructure to a new bank-grade trading platform for digital assets which manages $3.1 trillion in assets under management (AUM).
Major stablecoins inflow on exchanges spotted!
In general, stablecoin inflows and BTC outflows from exchanges to self-hosted wallets are two on-chain metrics that indicate a larger Bitcoin rally. As per the data by Glassnode, there was an inflow of about half a billion in Tether (USDT) across major Bitcoin exchanges on April 8, indicating that buyers could be looking for an opportunity to buy Bitcoin after a price correction. In just an hour, over $476 million worth of stablecoins were deposited on exchanges which according to Lex Moskovski, the CIO of Moskovski Capital indicates that there is plenty of capital waiting to buy Bitcoin as the price reduces slightly.
Similarly, data from CryptoQuant shows a similar trend. The exchange stablecoins ratio is rising once again, in which all BTC reserves are divided by stablecoin reserves on exchanges, indicating that investors are ready to enter and buy again.
Non-Fungible Tokens (NFTs)
In the coming months, Tom Brand, a famous American Football player will be introducing an NFT platform. The Autograph platform aims to host digital collectables in the entertainment, sports, fashion and pop culture industry.
Central Bank digital currency (CBDC)
In efforts to adopt the Central Bank digital currency (CBDC) in China, The People’s Bank of China (PBOC) is experimenting to expand CBDC to other provinces such as Hainan Province. The Government announced such a move to further publicize its efforts of increasing the adoption of CBDC in China. The main participants of the trial will include members of the Sansha City Government including their permanent residents, staff, and enterprises.
As Ethereum created a new all-time-high recently, it has officially started the alt season. Ethereum is currently trading at 2,089 and has significantly outperformed Bitcoin this season with its rising use-cases in NFTs and Decentralised Finance (DeFi). As the Ether price surged, the total value locked in DeFi now stands over $61 billion.
Binance Coin (BNB) has made significant gains and is currently trading at $431, up by 18% since last week. Litecoin (LTC) is currently trading at $226, up by 10% since last week. XRP continues to be a surprise by the constant increase in price, up by 74% in the last week currently trading at $1.03, and Tron has also increased 33% in the past 7 days. Chainlink (+6.7%), BCH (+13%), EOS (+15%), BAT (+9%), Doge(22%), DOT (8%)and XLM (+9%) have all shown an upward trend while Cardano (ADA) is back to $1.22, same as last week.
Top trading pairs on CoinDCX this week
Losing trading pairs on CoinDCX this week
In conclusion, the on-chain metrics data is indicating possibilities of a BTC rally as stablecoin deposits increase on exchanges and investors gear up to buy cryptocurrencies. Altcoins have shown impressive returns this week while Bitcoin and Ethereum have remained relatively flat. China is gearing up to roll out its CBDC in full swing and all eyes are on Coinbase IPO as the largest U.S. cryptocurrency exchange is scheduled to list its shares publicly on April 14 under the ticker COIN.