This Bitcoin Correction Is Different From March 2024—Here’s Why
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An analyst has explained how the Bitcoin correction phase differs from the correction phase in 2024 based on the data measured by the chain.
Stablecoin Supply shows different patterns in this bitcoin decline
In an encrypted QuickTake postalAn analyst analyzed how the latest trends in stable cycle supply were. “Stable” is a cryptocurrency that tracks the price of fiat currencies, whose prices are by far the most popular choice. These tokens run on multiple networks, but in the context of the current theme, only Ethereum-based networks are of great interest.
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In essence, the value of stablecoins is relatively “stable”, so investors usually just need to avoid volatility associated with assets like Bitcoin, so investors usually buy these coins.
But holders who invest in horses usually plan to eventually return to the turbulent side of the industry. Because if they don’t, they will quit. Once these traders feel the time is right, they will use stablecoins to exchange for Bitcoin or any required coins. This transformation will naturally put purchasing pressure on the price of the asset.
Because the potential of stablecoins has volatile cryptocurrencies to act as dry powder, these assets are often seen as “available” purchasing supplies for the industry. Therefore, an increase in its value may be considered a bullish sign.
Now, here is a quantitative chart showing the supply trends for ERC-20 stable stocks over the past year and a half:
As shown in the above chart, steady supply has been rising over the past few months, indicating that capital has been flowing into these Fiat tokens. As Bitcoin has been going through a stage Bearish momentum.
In the chart, analysts also highlighted the trend that BTC followed last year from last year’s bearish period. The stable supply at that time seemed to be moving sideways.
This means that, as BTC corrected in 2024, a net amount of capital flows out of the industry, as if capital is spinning into stable people, their supply will increase.
However, this time there did take place a capital rotation, and these stable buyers may wait off-the-counter for profitable entry points. Of course, the current setting is not the most bullish setting. If both Bitcoins are like this Market value The steady supply has increased at the same time.
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Nevertheless, the fact that the stabilizer, which has not yet been narrowed in this market decline, can still serve as an optimistic sign for Bitcoin.
BTC price
Bitcoin has once again failed to resume rally as its price has fallen to $84,000, before falling to $87,000.
Featured images from dall-e, charts from cryptoquant.com, tradingview.com
