On-chain data shows that US dollar exchange reserves have risen recently, suggesting that investors may exit volatile markets such as Bitcoin.
USD Coin All Exchanges Reserves Rise Lately
As pointed out by an analyst at CryptoQuant MailThere have been selling signs from Bitcoin investors to move to USDC.
dollar coinAll stock exchanges“It is an indicator that measures the total amount of stablecoins currently in the wallets of all exchanges.
When the value of this metric goes up, it means that investors are either depositing USDC on exchanges at the moment, or switching to the stablecoin from other cryptocurrencies.
Investors usually turn to stablecoins like USD Coin when they want to escape the volatility associated with cryptocurrencies like Bitcoin.
On the other hand, when the value of the reserve decreases, it means that the amount of USDC on the exchanges is currently decreasing.
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This type of trend may be due to investors now feeling it is an ideal point to jump into volatile markets, or it may simply be due to stockholders withdrawing into their personal portfolios.
Now, here is a chart showing the trend in all stock exchanges in USDC over the past few months:
Looks like the value of the indicator has been going up in recent days | Source: CryptoQuant
As you can see in the chart above, US dollar reserves have noticed some stock exchanges in an uptrend last week.
The chart also shows the direction of the USDC flow to exchanges, which is another metric that measures the total amount of stablecoins transmitted to central exchanges.
It appears that inflows have not been abnormally high lately, but the reserve is still seeing an upward movement.
This could mean that the increase in reserves is not only due to investors depositing their USDC, but also due to their exchange of cryptocurrencies such as Bitcoin for stablecoin.
The trend may indicate that investors are leaving volatile markets for the time being, due to uncertain current market conditions. This recent sell-off could be bearish for the values of Bitcoin and other cryptocurrencies.
At the time of writing this report, Bitcoin price It is floating around $19.1K, down 7% in the past seven days. Over the past month, the cryptocurrency has lost 35% of its value.
The chart below shows the currency price trend over the past five days.
The value of the crypto seems to have declined over the last couple of days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com