Long Term Bitcoin Holders Are Buying Heavily Right Now
TL;DR
Long term holders are gobbling up Bitcoin at their fastest rate in over a year, but the lack of stablecoin liquidity could dampen any resulting price rallies.
Full Story
We have some good news, and some ‘meh, could be better’ news.
According to CryptoQuant, long term holders are gobbling up Bitcoin at their fastest rate in over a year.
Buuut, the lack of stablecoin liquidity could dampen any resulting price rallies.
Cool. What does that all mean?
Let’s start with the easy bit: long term holders buying up Bitcoin reduces the available supply and helps to push prices up over time.
It also sends a signal to the rest of the market saying “this might be a good price to get in at” — potentially compounding the supply crunch and pushing prices even higher.
As for low stablecoin liquidity, that just means there’s not as many stablecoins sloshing around on exchanges (ready to be used).
And at this point in time, the majority of stablecoins out there are used to do one thing:
Buy more crypto.
So when prices start to tick up, ideally you want to see as many stablecoins sitting on exchanges and ready to be traded as possible.
The more stablecoins there are to trade, the greater the potential buying frenzy (and resulting price pump).
Alright, now you know!