Ki Young Ju, chief executive of on-chain insights platform CryptoQuant, says that it’s time to go all-in on Bitcoin.
I think it’s time. https://t.co/Do9CZ7BY85
— Ki Young Ju 주기영 (@ki_young_ju) March 29, 2021
To support his bullish call, Ki Young Ju points to the correlation between the price of Bitcoin and the stablecoins ratio, a metric that divides BTC reserves by all stablecoin reserves stored in exchanges. According to the CryptoQuant executive, a plummeting stablecoin ratio indicates that Bitcoin and the broader crypto market may be gearing up for the next leg up.
“The crypto market is getting better in terms of supply/demand. Relatively many stablecoins across all exchanges thanks to the rise of USDC. BTC holdings are decreasing fast. Here’s the ratio that BTC holdings in USD divided by stablecoins holdings across all exchanges.”
On top of the plunging stablecoins ratio, Ki Young Ju says that the stablecoin market is flashing buy signals.
“For all stablecoins,
Number of issuing event is increasing
Number of redeeming event is decreasing
On March 17th when Bitcoin was threatening to break $60,000, Ki Young Ju looked at the stablecoin market and tweeted that it would take more time before BTC can kick off another rally as there were “too many BTC holdings in USD compared to stablecoin holdings on spot exchanges.”
At time of writing, Bitcoin is trading at $58,997.
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