Stablecoins’ Market Cap Surged Last Week, Shows On-Chain Data
The blockchain intelligence platform, Santiment, revealed in an X post that the combined market caps of stablecoins surged during the past week. According to the post, this increased buying power is what allowed Bitcoin (BTC) to rise above the $30K mark. Santiment predicted that BTC’s price could continue to rise as long as whales accumulate stablecoins.
💸 The combined market caps of #stablecoins $USDT, $USDC, $BUSD, $DAI, $TUSD, & $USDP surged this past week, increasing buying power that assisted #Bitcoin to #30K. More sustained rises will come when whales accumulate stablecoins while $BTC remains flat. https://t.co/Fh16oIzHUI pic.twitter.com/UX9YjGZNJB
— Santiment (@santimentfeed) October 20, 2023
Further on-chain analysis showed that the collective stablecoin market cap recorded its largest 2-day rise since the middle of June this year. The also post revealed that this uptick took place just before BTC’s price spiked more than 17% in 1 week. Furthermore, the post highlighted that whales with $5 million or more in stablecoins currently hold over half of the supply.
Investors and traders may begin to take profit given the strong rise in BTC’s price. The cryptocurrency whale tracking platform Whale Alert revealed that a whale has already transferred a large amount of BTC to an exchange. According to the post, 2,832 BTC, worth $83,772,867, was sent from an unknown wallet to Coinbase just minutes ago.
🚨 🚨 🚨 🚨 2,832 #BTC (83,772,867 USD) transferred from unknown wallet to #Coinbasehttps://t.co/jQSZGA4vGw
— Whale Alert (@whale_alert) October 21, 2023
This transfer has not been followed by a selloff yet, as BTC was still up 2.98% over the past 24 hours. Furthermore, CoinMarketCap indicated that the market leader’s price was also up 0.08% over the past hour alone. Subsequently, BTC was changing hands at $29,598.35.
Daily chart for BTC/USDT (Source: TradingView)
From a technical standpoint, BTC was trading between the $29,210 support level and the $30K barrier at press time. Should BTC close a daily candle above the $30K benchmark within the next 48 hours, then it may continue to rise to the subsequent threshold at $31,400 in the following couple of days.
On the other hand, BTC failing to establish a position above $30K in the next 2 days could lead to it testing the $29,210 support level. Thereafter, a break below this mark could put BTC at risk of dropping to $27,915 in the short term.
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