TL;DR
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We now have some excellent news, and a few ‘meh, may very well be higher’ information.
In keeping with CryptoQuant, long run holders are gobbling up Bitcoin at their quickest fee in over a yr.
Buuut, the shortage of stablecoin liquidity may dampen any ensuing worth rallies.
Cool. What does that each one imply?
Let’s begin with the straightforward bit: long run holders shopping for up Bitcoin reduces the out there provide and helps to push costs up over time.
It additionally sends a sign to the remainder of the market saying “this is likely to be worth to get in at” — doubtlessly compounding the provision crunch and pushing costs even increased.
As for low stablecoin liquidity, that simply means there’s not as many stablecoins sloshing round on exchanges (prepared for use).
And at this time limit, nearly all of stablecoins on the market are used to do one factor:
Purchase extra crypto.
So when costs begin to tick up, ideally you wish to see as many stablecoins sitting on exchanges and able to be traded as potential.
The extra stablecoins there are to commerce, the better the potential shopping for frenzy (and ensuing worth pump).
Alright, now you realize!
