CryptoQuant records a record inflow of stablecoins to exchanges in 2023

The research firm’s analyst considers the growth of the figure a sign of a bull market

07.03.2023 - 16:25

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2 min

What’s new? An expert at research firm CryptoQuant under the nickname crypto JAYBOT believes that bullish sentiment has prevailed in the market. He came to that conclusion based on data showing a large-scale inflow of stablecoins to exchanges, which reached its highest level since November 18, 2022. Thus, on March 5, the figure approached $1,7 billion.

Publication on the CryptoQuant website

What else did the analyst report? In a short period of time, the price of bitcoin has fallen, while the potential buying power of the market has increased. “I think it’s bullish,” the analyst added, attaching a poll of other users’ opinions to the publication. At the time of publication, 75% (30 votes) agreed with JAYBOT, while 25% (10 votes) thought the analyst’s conclusions were wrong.

CryptoQuant said in February that cryptocurrencies would return to a bear market if the circulating supply of stablecoins does not grow further. The analyst called stablecoins the liquidity of the digital currency market and cited the consequences of the COVID-19 pandemic. Thus, in 2020, the growth in the supply of stablecoins led to a bull market, with a bearish cycle beginning in February 2022, when the figure began to decline.

CryptoQuant previously reported that in late 2022-early 2023, the market recorded a record outflow of bitcoins from centralized exchanges (CEXs) for the entire existence of the first cryptocurrency.

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