🚨 Stablecoin Growth May Be Sending a Different Signal About Bitcoin!
Crypto market rallies are often linked to the idea that fresh capital is waiting on the sidelines, ready to enter through stablecoins. But new research from Coin Metrics, shared by Talos, suggests the relationship is not as simple as many traders think.
Interestingly, crypto rallies have been associated with slower USDC growth and faster USDT growth in the following week. This challenges the common assumption that rising stablecoin supply always signals more buying power for Bitcoin.
There’s another important detail: none of the models explains more than 25% of weekly stablecoin supply variation. That means plenty of factors remain outside the picture.
My takeaway: Stablecoin supply is worth watching, but it shouldn’t be treated as a standalone trading signal. USDT and USDC trends, liquidity conditions, and actual market flows together can provide a more useful perspective.
Sometimes, the data tells a very different story from the popular market narrative. 📊
$DOOD $ARIA
#Bitcoin #CryptoMarket #Stablecoins #USDT #USDC
Crypto market rallies are often linked to the idea that fresh capital is waiting on the sidelines, ready to enter through stablecoins. But new research from Coin Metrics, shared by Talos, suggests the relationship is not as simple as many traders think.
Interestingly, crypto rallies have been associated with slower USDC growth and faster USDT growth in the following week. This challenges the common assumption that rising stablecoin supply always signals more buying power for Bitcoin.
There’s another important detail: none of the models explains more than 25% of weekly stablecoin supply variation. That means plenty of factors remain outside the picture.
My takeaway: Stablecoin supply is worth watching, but it shouldn’t be treated as a standalone trading signal. USDT and USDC trends, liquidity conditions, and actual market flows together can provide a more useful perspective.
Sometimes, the data tells a very different story from the popular market narrative. 📊
$DOOD $ARIA
#Bitcoin #CryptoMarket #Stablecoins #USDT #USDC