InsideBitcoins.com

Crypto Investors Keeping Stablecoins For Next Big Price Movement

stablecoins

The March 12 crypto crash had hit many investors hard, fast, and without mercy. The entire crypto industry managed to halve itself in value amid the panic of the coronavirus pandemic, with Bitcoin managing to drop under the $4,000 mark at the worst stages of it. However, the industry has taken notice of something: Stablecoins are performing at their best in this trying time, which hints at investors gearing up for another round.

Waiting To Make A Move

The stablecoins have managed to maintain a record-high level for more than a month, and crypto analysts have taken it as a sign that crypto traders as a whole have yet to give up on the industry. It’s suspected that they’re simply biding their time, stablecoins in their accounts, until there’s an excellent opportunity to re-enter the mainstream forms of crypto like Bitcoin or Ethereum.

As stated, many investors in the crypto industry moved their holdings to stablecoins, particularly the ever-popular Tether (USDT), as well as the USD Coin (USDC). This occurred during one of the largest sell-off in the crypto industry’s history, where half of the crypto space’s market value simply vanished in the span of days.

Stablecoins Staying Strong

However, it should be noted that the market cap for stablecoins didn’t go down during this turbulent time. The stablecoin space didn’t drop as volatility skyrocketed across the industry, and it hasn’t dropped since it’s gone down to normal levels. In fact, the stablecoin market cap has only been rising as of late. This, in turn, makes analysts theorize that investors are bullish for crypto, they’re just waiting for the right time to push their money into their coin of choice.

Ryan Selkis, the founder of the crypto market research firm, Messari Crypto, made an astute observation in regards to this.

He explained that if investors had indeed given up on the crypto market as a whole, they wouldn’t be in crypto stablecoins at all, for the most part. Selkis stated that they would’ve sold their crypto holdings, stablecoins included and moved the funds to conventional bank accounts. However, with more than $3 billion staked in stablecoins at this time, there’s an entirely different narrative being suggested: one of bullish intent.

Warnings For Future Bull Run

Glassnode, another blockchain analytics firm, made similar speculation after it pointed to the trend, as well.

Glassnode had reported that Tether had managed to accrue another all-time-high in balances held in exchanges on Friday. The previous all-time high was recorded just a day before the new record. Thus, it’s quickly concluded that the appetite for stablecoins is only growing for investors, and the market is continuously growing by the day.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.