With both bulls and bears embroiled in a tug-of- war, the cryptocurrency market has adopted a tense holding pattern. A ray of optimism appears from an unanticipated source: stablecoins, while Bitcoin (BTC) struggles to recover momentum following its post-halved retracing and altcoins reflect its gloomy attitude.
NewsBTC looked at the behaviour of stablecoins, sometimes considered as a safe refuge amid market crisis. Their research showed a concerning trend: active stablecoin addresses dropped significantly since April 16th.
Tracking the amount of distinct addresses involved in sending and receiving stablecoins this statistic points to less buying and selling activity.
This inaction fits another alarming statistic: the reserve for stablecoins. This statistic shows the total stablecoins deposited on exchanges, therefore serving as investors’ war chest for acquiring other cryptocurrencies.
Although the exchange reserve has experienced a consolidation over 2024, the image of declining buying power is shown by a clear decline between April 23rd and May 10th.
All Stablecoins(ERC20): Active Addresses (SMA 7). Source: CryptoQuant
Stablecoins: Recent Inflow Offers A Beacon Of Hope
Still, a new development presents a possible counterweight to this story. On May 13, steadycoin deposits on exchanges clearly showed an increase. Although it is still too early to get clear answers, this flood could indicate investors’ fresh eagerness to participate in the market.
Some observers pointed out that this recent increase in stablecoin deposits is most certainly interesting. It implies that investors might be setting themselves for possible chances even though it does not ensure a positive reversal. Whether this is a passing blip or the beginning of a new trend will depend critically on the next several days.
Total crypto market cap currently at $2.3 trillion. Chart:
Tether Dominance: A Canary In The Crypto Coal Mine
The Tether (USDT) dominance chart reveals still another insightful information. Tracking USDT’s market capitalisation as a % of the overall crypto market cap, this statistic measures change.
High USDT dominance indicates a cautious market by reflecting investor taste for stablecoins. On the other hand, a decline usually marks wider market rallies.
USDT domination almost reaches the 5% support level right now. Although analysts predict it to ascend towards the 5.50% barrier, a surprising decline below this level could indicate a positive indication.
Market In Limbo: Patience And Due Diligence Key
The market for cryptocurrencies finds itself at a juncturn. Although bearish patterns predominate in the current scene, bulls have some hope from the recent increase in stablecoin deposits and possible change in Tether supremacy.
Whether the market starts a brilliant comeback or stays trapped in its present wait-and-see phase will depend much on the next days and weeks.
Featured image from sciencefocus.com, chart from TradingView
They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
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Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!
So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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