The current data suggests that while Bitcoin (BTC) is seeing a slowdown, the three main stablecoins Tether (USDT), USD Coin (USDC), and Dai (DAI) continue to grow.
Bitcoin vs. Stablecoin: BTC slows down while USDT, USDC, and DAI continue to grow
Bitcoin seems to have slowed down its strong rally in 2024, which brought it to exceed its all-time high on March 13, above $73,000.
And indeed, since that day the price of BTC has remained in the range of $61,000-71,000, without touching its ATH anymore. At the time of writing, the price of BTC is $66,400.
On the contrary, according to what reported, the cumulative supply of the three main stablecoins, Tether (USDT), USD Coin (USDC), and Dai (DAI), has risen to $141.42 billion, the highest value since May 2022.
Basically, Tether (USDT), USD Coin (USDC) and Dai (DAI), which represent more than 90% of the stablecoin market, have seen an increase in their supply of 2.1%.
Not only that, just in this 2024, such cumulative offer of the three main stablecoins has increased by over 20 billion dollars.
Stablecoin vs. Bitcoin: the MVRV Z-Score suggests that BTC still has a lot to gain
In addition to price, there are other indicators such as the bitcoin MVRV Z-Score, which suggest that BTC still has a lot to gain.
Basically, the MVRV Z-Score of Bitcoin evaluates when BTC is overvalued or undervalued compared to its fair value.
Specifically, this indicator approximates the value paid for all existing coins, by summing the market value of the coins when they last moved on the blockchain, and is considered a proxy for fair value.
Usually, when the MVRV Z-Score is below zero it has marked the market bottoms, while a reading above seven has marked the tops.
Looking at the current chart from Glassnode, the Bitcoin (BTC) MVRV Z-Score is 2.87, indicating that bitcoin is far from being overbought or near a major market top.
Tether and its BTC accumulation strategy
Despite the growing market of stablecoins pegged to the dollar, compared to the slowdown of Bitcoin (BTC), there are those who support the queen of crypto regardless.
The crypto company behind USDT, the world’s largest stablecoin, Tether, continues to implement its Bitcoin (BTC) accumulation strategy, started in May 2023.
And indeed, on March 31, 2024, Tether added another 8,888.888 BTC to its wallet, for a total of 75,354 BTC.
This strategy involves Tether investing part of its profits (calculated at 15%) to buy its own bitcoins.
