1. Home
  2. Bitcoin
  3. Stablecoin supply alone won’t pump Bitcoin markets — Ki Young Ju
<div>Stablecoin supply alone won't pump Bitcoin markets — Ki Young Ju</div>

Stablecoin supply alone won’t pump Bitcoin markets — Ki Young Ju

0

Source: Coin Telegraph

Stablecoins are now primarily used to store value in countries with rapidly depreciating fiat currencies or prohibitive capital controls. 

As Bitcoin (BTC) hovers around the $70,000 price level, investors and analysts debate the specific catalysts that will send markets higher. CryptoQuant founder and CEO Ki Young Ju recently explained that while stablecoin supply continues to grow, this added volume is not high enough to create significant buy-side liquidity and drive BTC prices higher.

The CryptoQuant founder presented the current Bitcoin-to-Stablecoin Exchange Reserve Ratio — a metric that measures Bitcoin reserves on exchanges compared to stablecoins — which indicates there is approximately six times as much BTC held on exchanges as stablecoins.

According to Ju, stablecoin reserves accounted for $30 billion in value during September 2021. Currently, the entire stablecoin market capitalization is roughly $166 billion. However, only 21% of these stablecoins are held on exchanges for trading purposes — a far cry from 2021 when over 50% of the total stablecoin supply was held on exchanges.

Read more

Go to Source
Author: Vince Quill