TL;DR
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We now have some excellent news, and a few ‘meh, could possibly be higher’ information.
In accordance with CryptoQuant, long run holders are gobbling up Bitcoin at their quickest fee in over a yr.
Buuut, the shortage of stablecoin liquidity might dampen any ensuing worth rallies.
Cool. What does that every one imply?
Let’s begin with the simple bit: long run holders shopping for up Bitcoin reduces the accessible provide and helps to push costs up over time.
It additionally sends a sign to the remainder of the market saying “this may be an excellent worth to get in at” — doubtlessly compounding the provision crunch and pushing costs even greater.
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 need to see as many stablecoins sitting on exchanges and able to be traded as doable.
The extra stablecoins there are to commerce, the larger the potential shopping for frenzy (and ensuing worth pump).
Alright, now you recognize!
