The on-chain knowledge for the stablecoin redemptions in the course of the latest worth plunge may recommend there aren’t many Bitcoin holders promoting anymore.
Stablecoin Redeem Count Has Remained Low Recently
As identified by an analyst in a CryptoQuant publish, massive stablecoin redemptions have often accompanied main declines within the Bitcoin worth throughout this bear market. A stablecoin is alleged to be “redeemed” when an investor exchanges the token for fiat by way of the issuer of mentioned coin.
Investors often use stablecoins once they wish to escape the volatility related to tokens like Bitcoin. Thus, redemptions of them is usually a signal that buyers are exiting the market presently. The “stablecoins redeemed supply” is an indicator that measures the overall quantity of such redemptions taking place throughout the market of all varieties of stables.
Another metric that retains observe of those withdrawals is the “stablecoins redeem event count,” which, as its title already implies, measures the overall variety of redemptions happening available in the market slightly than the overall sum of their worth.
Now, here’s a chart that exhibits the pattern in each these stablecoin redemptions indicators over the previous 12 months:
Looks like solely considered one of these metrics had its worth elevated in latest days | Source: CryptoQuant
As the above graph shows, in the course of the massive declines within the worth of Bitcoin on this bear market to this point, the stablecoins redeemed provide has often registered excessive values. This pattern is smart as buyers could be changing to stables to dump in the course of the crash, after which redeeming them for fiat.
The stablecoin redeem rely additionally noticed spikes throughout such dumping occasions, aside from the latest one. This implies that within the worth plunges earlier than the newest one, many buyers all the time took half in stablecoin redemptions, displaying that the market had a uniform and extra pure promoting urge for food.
In the latest decline the place Bitcoin went from above $18k to under $17k, nevertheless, the redeemed rely has stayed low whereas the redeemed provide has nonetheless noticed very excessive values. This signifies that only some whales have been concerned on this dumping occasion, a doable signal that largescale promoting strain could also be getting depleted available in the market.
At the time of writing, Bitcoin’s worth floats round $16,800, up 1% within the final seven days. Over the previous month, the crypto has gained 2% in worth.
The worth of the coin appears to haven't proven any important deviations in the previous few days | Source: BTCUSD on TradingView
Featured picture from Dmitry Demidko on Unsplash.com, charts from TradingView.com, CryptoQuant.com