{"id":257961,"date":"2020-04-18T04:47:32","date_gmt":"2020-04-18T08:47:32","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=257961"},"modified":"2020-06-19T11:57:07","modified_gmt":"2020-06-19T15:57:07","slug":"crypto-investors-keeping-stablecoins-for-next-big-price-movement","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/crypto-investors-keeping-stablecoins-for-next-big-price-movement","title":{"rendered":"Crypto Investors Keeping Stablecoins For Next Big Price Movement"},"content":{"rendered":"

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.<\/p>\n

Waiting To Make A Move<\/strong><\/h2>\n

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\u2019s suspected that they\u2019re simply biding their time, stablecoins in their accounts, until there\u2019s an excellent opportunity to re-enter the mainstream forms of crypto like Bitcoin or Ethereum.<\/p>\n

As stated, many investors in the crypto industry moved their holdings to stablecoins, particularly the ever-popular Tether (USDT)<\/a>, as well as the USD Coin (USDC). This occurred during one of the largest sell-off in the crypto industry\u2019s history, where half of the crypto space\u2019s market value simply vanished in the span of days.<\/p>\n

Stablecoins Staying Strong<\/strong><\/h2>\n

However, it should be noted that the market cap for stablecoins didn\u2019t go down during this turbulent time. The stablecoin space didn\u2019t drop as volatility skyrocketed across the industry, and it hasn\u2019t dropped since it\u2019s 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\u2019re just waiting for the right time to push their money into their coin of choice.<\/p>\n

\"\"<\/a><\/p>\n

Ryan Selkis, the founder of the crypto market research firm, Messari Crypto, made an astute observation in regards to this.<\/p>\n

https:\/\/twitter.com\/twobitidiot\/status\/1250979847536590849<\/p>\n

He explained that if investors had indeed given up on the crypto market as a whole, they wouldn\u2019t be in crypto stablecoins at all, for the most part. Selkis stated that they would\u2019ve 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\u2019s an entirely different narrative being suggested: one of bullish intent.<\/p>\n

Warnings For Future Bull Run<\/strong><\/h2>\n

Glassnode, another blockchain analytics firm, made similar speculation after it pointed to the trend, as well.<\/p>\n

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\ud83d\udcc8 $USDT<\/a> Balance on Exchanges (1d MA) just reached an ATH of 1,662,908,185.561 USDT<\/p>\n

Previous ATH of 1,662,197,084.871 USDT was observed on 16 April 2020<\/p>\n

View metric:https:\/\/t.co\/Hpeb0LFt3p<\/a> pic.twitter.com\/52plIME2H8<\/a><\/p>\n

— glassnode alerts (@glassnodealerts) April 17, 2020<\/a><\/p><\/blockquote>\n