A prominent crypto analytics platform says one metric could signal the next big rally for Bitcoin (BTC) amid a flurry of massive whale transactions involving the king crypto.
According to market intelligence firm Santiment, traders should keep a close watch on the market caps of stablecoins such as Tether (USDT), USD Coin (USD Coin), Binance USD (BUSD), Pax Dollar (USPD), and Dai (DAI).
Santiment says that the combined buying power of the top five stablecoins stands at $126.31 billion, which is more than double its value in March 2021. Per the analytics firm, Bitcoin’s sustained ascent could hinge on the growth of the top five stablecoins by market cap.
“As a great Q1 comes to an end for the recovering crypto markets, the combined buying power for USDT, USDC, BUSD, DAI, and USDP is $126.3 billion. The decline has tapered off this week. A rise would signal a major increased probability of Bitcoin rising.”
Santiment’s insights on the stablecoin market comes as the analytics firm recently issued an alert to Bitcoin holders. Last week, the analytics firm revealed that the five largest Bitcoin transactions in 2023 all happened in March, suggesting that large BTC entities may be starting to take profits.
“Based on the very large transactions going on in March, as well as the 10 – 10,000 BTC address tier continuing to slide down (by percentage) and taper off (by total addresses), it does look like there are some legitimate caution flags to be wary of if you’re hoping to see Bitcoin surge to $35,000 and beyond…
The five largest transactions of 2023 thus far have all happened in March, and this seems to be a result of profit taking and fears of a top after the ~+70% rebound for BTC.”
Bitcoin is trading for $28,502 at time of writing.
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