According to CryptoPotato, stablecoins have experienced substantial growth this year, with USDT leading the pack. However, other stablecoins like the Circle-backed USDC are also witnessing considerable activity. Recent deposits of USDC to centralized crypto exchanges could indicate investors capitalizing on lower cryptocurrency prices during recent market corrections.
Lucan Outumuro, Head of Research at IntoTheBlock, reported that USDC's net inflow into centralized crypto exchanges hit a one-year high of $228 million on June 24. This increase suggests that investors are depositing stablecoins to take advantage of lower cryptocurrency prices. CryptoQuant co-founder Ki Young Ju further validated this trend, noting that while the stablecoin market is growing, its ratio to Bitcoin's market mirrors previous all-time highs. The exchange reserves ratio also suggests that stablecoins have already been used as buy-side liquidity, implying that new inflows are needed for stablecoins to drive the next market upswing.
Despite Bitcoin's disappointing trajectory over the past month, these declines may present unique long-term buying opportunities for market players. Indications of recovery include the US spot Bitcoin ETF's minor inflow of $31 million, reversing the week-long outflow streak. On the technical side, Bitcoin's RSI has moved from heavily oversold levels to around 33, suggesting significant potential for growth for the world's largest digital asset. Experts also suggest the formation of a hidden bullish divergence for Bitcoin on the daily RSI, indicating that the asset could potentially be on the cusp of a bullish breakout.