Most crypto spot and futures trading are conducted against stablecoin pairs - and an increase signals capital parked on the sidelines to deploy on favorable catalysts.
- Stablecoin market capitalization has steadily reached $169 billion led by USDT and USDC, with the increase preceding price movements in past cycles.
- Historical data suggests a positive correlation between increased stablecoin balances on exchanges and rising Bitcoin prices, with a notable 146% increase in USDT on exchanges since January 2023.
- There has been a significant increase in large or "whale" transactions on the Bitcoin network, alongside a spike in on-chain volume.
A record amount of dollar-backed stablecoins and a spike in large bitcoin (BTC) transactions could form the bedrock for a broader BTC rally in the coming weeks, keeping the asset’s bullish October seasonality intact.
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