- The collective market caps of all stablecoins has surged by 25% in a month
The collective market cap of the top stablecoins including Tether, USD Coin, PAX, and BUSD has surged from less than USD 6 billion in March to roughly USD 8 billion currently, an increase of 25% in a month. This could be a precursor to a major Bitcoin rally.
Essentially, stablecoins are the equivalent of cash in the crypto space. Stablecoins can easily be transferred across crypto exchanges to buy and sell cryptocurrencies. In other words, they are much more liquid than regular fiat, and investors buy up these tokens in order to be ready to buy Bitcoin and other cryptocurrencies.
Therefore, the surge in the stablecoin market cap, which is equivalent to a surge of investors converting their fiat into these specific tokens, could be a precursor for a major Bitcoin and crypto rally. Basically, investors are buying them en masse this past month, and now they can use those stablecoins to buy Bitcoin instantly.
The fact that the Bitcoin block halving is now only three weeks away could definitely be related to this surge, since the block halving is expected to cause a rally in the network, and therefore investors could be accumulating stablecoin so that they are ready to buy Bitcoin before the halving rally takes off.
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