Tracking demand for Bitcoin and digital assets is not easy, but one of the most useful ways is through the amount of money allocated to stablecoins.
Tether's synthetic dollar remains the main stablecoin in the market and has a high correlation with market sentiment.
Periods where market capitalization and circulating supply increase signal moments of interest in allocation to digital assets.
On the other hand, moments of reduction in market capitalization indicate that institutional investors are withdrawing money from the crypto market.
It will be important to see a new wave of new money entering via stablecoins to have a clearer signal of an upward trend in Bitcoin and digital assets.
Written by caueconomy