Attention to Stock Market Flows in Bitcoin and Altcoins: May Fluctuate in the Short Term!

Deposit/withdrawal transactions seen in exchanges may cause short-term fluctuations in cryptocurrency markets.

According to CryptoQuant data, the amount of stablecoins sent to spot cryptocurrency exchanges in the last few days has increased significantly. On the other hand, there was no similar increase in the amount of stablecoins withdrawn from exchanges.

Since investors widely use stablecoins to purchase Bitcoin and altcoins, the increase in the amount of stablecoins held in exchanges is interpreted as an increase in the purchasing demand in the market.

“Historically, after these dynamics have occurred, bullish or bearish movements have frequently occurred in the short term, indicating that there may be notable price movement in the near term,” CryptoQuant analyst said.