Another effort by Bitcoin [BTC] bulls to surpass $12,000 gets rejected with a flash drop to lows at $11,500. According to Datamish, the move liquidated $30 million in Bitcoin longs.
Nevertheless, the market is witnessing a quick reversal to $11,950 looking to break resistance around $12,000. The trader sentiments are bullish despite the drop. It is further reinforced by $500 million in added supply at Tether.
Reportedly, before the reversal above $11,750, Tether mints $500 million USDT taking the total USDT treasury at $11.856 billion. Around the same time, WhaleAlert also finds $200 million in transfers to Binance. The $200 million were transferred in two sets of around $100 million each. The details of which can be found on links below,
As reported earlier on CoinGape, stablecoins are increasingly finding utility as a Store of Value (SoV) and medium of transfer. According to a report by Chainalysis,
In this last quarter of global crises, Tether may have found a new use case as a store of value. With the supply of Tether on Bitcoin and Ethereum having increased by 50% in Q1 and 27% in Q2, there is now enough Tether to go around.
Hence, the added supply of Tether can also be for arbitrage trading and added liquidity across exchanges for USDT.
Bitcoin Flows on Exchanges Indicate Bulls Are Strong
Moreover, in the last few weeks, the flow of Bitcoin [BTC] across exchanges have been bullish as well. According to Phillip Gradwell, the Chief Economist at Chainalysis, the exchange
#bitcoininflows to exchanges this Sunday were back to normal levels, so less bitcoin has been added to be sold. Exchange balances have been increasing so there is still liquidity, but interesting that additional supply may be slowing
As mentioned earlier on CoinGape, the relative flow of deposits and withdrawal across exchanges builds the trend in the market. Greater outflows would represent self-custody or other investments; hence, bullish. Conversely, larger inflows represent sell-off on exchanges.
It is evident that since the beginning of the month, the exchange outflows (>60k) have been greater than the inflows. According to a seperate update from Glassnode for exchange flows in the last week, the net flow of Bitcoin, Ethereum, and USDT (ERC-20) has been negative (greater outflows).
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com