‘Investors ready to throw themselves out’ —Crypto is now ready for a $ 140 billion earthquake following Terra Luna-led Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin crashes
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The Bitcoin price has this week jumped around the closely monitored $ 20,000 per bitcoin level, while the ethereum price has built up some support over $ 1,000 per ether. Second top ten cryptocurrencies — BNB
Now that bitcoin and crypto have been labeled as “the largest Ponzi scheme in human history”, research has shown that $ 140 billion is “ready to be distributed to bitcoin and altcoins” following the rapid growth of crypto’s four largest stable coins by market value.
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Bitcoin and cryptocurrencies have had an almighty crash in recent weeks with the bitcoin price … [+]
“The amount of money sitting on the digital sidelines has never been greater, pointing to an abundance of patient investors who are ready to throw in discounted digital assets,” Digital Asset Investment Management (DAIM) analysts wrote in a recent report, and points to the growth of Tether’s USDT, Circles USDC, Binances BUSD and MarkerDAO’s DAI.
These four dollar-linked stable coins have risen more than 20 times – from $ 7 billion to $ 147 billion – in the last two years.
“This means that the ecosystem has an additional $ 140 billion ready to be distributed to bitcoin and altcoins,” DAIM researchers wrote, noting that stack coins also provide shelter against cryptocurrencies and wild price fluctuations.
Meanwhile, research from Australian-based digital asset manager Zerocap, first reported by Block worksfound that when the combined market value of crypto crashed 70%, from $ 3 trillion to $ 900 million, the circulating supply of the top four stable coins increased by almost 13%.
“The net growth in the stablecoin supply is entirely indicative of users who have funds on the chain as opposed to retiring to the dollar,” Zerocap said Block works. “Some of the stack coins that are sitting on the chain are probably kept there while investors cost on average in investments or sit still and wait for a suitable time to distribute.”
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The Bitcoin price has returned to over 20,000 dollars per bitcoin this week after a few bruises … [+]
Circles USDC has seen its supply grow by around 60% over the past eight months, giving it a market value of $ 55 billion, Zerocap found – putting the USDC in touch with the tyrant’s $ 65 billion. Conversely, USDT’s circulating offerings have shrunk recently as investors withdraw money.
“The huge growth of the USDC relative to its peers indicates an increase in investors who value clarity around stablecoin support,” Zerocap said, referring to how various stablecoins maintain their dollar peg. “The Terra crash burned a large percentage of users in the area and probably led many to reconsider the quality of support behind the (intended) stable part of their portfolio.”
DAIM analysts predict that the bottom of the bitcoin and crypto market will come towards the end of this year, warning that the price of bitcoin may fall as low as $ 10,000, but remain optimistic in the long run.
“Maximum pain in Bitcoin generally means maximum opportunity,” DAIM analysts added. “There will come a time when the negative news ends.”
