Long Term Bitcoin Holders Are Buying Heavily Right Now
TL;DR
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We now have some excellent news, and a few ‘meh, might be higher’ information.
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Based on CryptoQuant, long run holders are gobbling up Bitcoin at their quickest fee in over a 12 months.
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Buuut, the shortage of stablecoin liquidity might dampen any ensuing worth rallies.
Cool. What does that every one imply?
Let’s begin with the simple bit: long run holders shopping for up Bitcoin reduces the out there provide and helps to push costs up over time.
It additionally sends a sign to the remainder of the market saying “this is likely to be a great worth to get in at” — probably compounding the provision crunch and pushing costs even larger.
As for low stablecoin liquidity, that simply means there’s not as many stablecoins sloshing round on exchanges (prepared for use).
And at this time limit, the vast majority of stablecoins on the market are used to do one factor:
Purchase extra crypto.
So when costs begin to tick up, ideally you need to see as many stablecoins sitting on exchanges and able to be traded as doable.
The extra stablecoins there are to commerce, the better the potential shopping for frenzy (and ensuing worth pump).
Alright, now you understand!
