According to CryptoPotato, stablecoins have seen significant growth this year, with USDT leading the pack. However, other stablecoins such as Circle-backed USDC are also seeing significant activity. Recent deposits of USDC to centralized cryptocurrency exchanges could indicate that investors are benefiting from falling cryptocurrency prices during recent market corrections.
Net USDC inflow to centralized cryptocurrency exchanges reached a one-year high of $228 million on June 24, Lucan Otomoro, head of research at IntoTheBlock, reported. This increase indicates that investors are depositing stablecoins to take advantage of the decline in cryptocurrency prices. Ki Young Joo, co-founder of CryptoQuant, has validated this trend, noting that while the stablecoin market is growing, its ratio to the Bitcoin market reflects previous all-time highs. The exchange reserves ratio also indicates that stablecoins have already been used as buy-side liquidity, meaning that new inflows of stablecoins are needed to drive the next market rally.
Despite Bitcoin's disappointing trajectory over the past month, these declines may provide unique long-term buying opportunities for market players. Signs of a recovery include a modest outflow to a US Bitcoin ETF of $31 million, reversing a week-long string of outflows. On the technical side, Bitcoin's Relative Strength Index has moved from significantly oversold levels to around 33, indicating significant growth potential for the world's largest digital asset. Experts are also suggesting a subtle bullish divergence is forming for Bitcoin on the daily RSI, indicating that the asset is likely on the cusp of a bullish breakout.
