Traders are gearing up for Bitcoin to potentially reach a new record high, as indicated by stablecoin data. This data, gathered by KuCoin Research, suggests that more people are putting their money into stablecoins like Tether and USD Coin, possibly in anticipation of Bitcoin’s upcoming halving event, scheduled in a week.
KuCoin Research analysts wrote, “The issuance of USDT increased by 5.825 billion in March, and USDC issuance increased by 3.803 billion, showing a significant increase compared to the previous month.”
While some stablecoins like Binance USD, True USD, and PayPal USD saw a decrease in issuance, Tether and USD Coin continued to be popular choices, with their issuance steadily rising.
This increase in stablecoin activity began in early March, just before Bitcoin reached its previous all-time high. Glassnode analysts found that Tether experienced a significant increase in inflows on March 3, jumping by 192% from $806.2 million to $2.466 billion by March 5. Notably, Bitcoin surpassed its previous peak of $69,800 on March 5.
Data from Glassnode shows that the total amount of stablecoins on exchanges has gone up from $19.7 billion to $20.34 billion since April 7th.
Additionally, the overall market value of stablecoins has seen a 2.8% increase, going from $150.42 billion on April 1st to $154.7 billion. The majority of this value is held by USDT, accounting for over 69.1% of the total market cap.
This pattern of increasing stablecoin balances on exchanges and market capitalization is often seen as a sign of how traders are positioning themselves in the market.
Also Read: Santiment Signals Crypto Bull Run Ahead of Bitcoin Halving
