Bitcoins [BTC] The next bull run could depend on how well USDC would flow into exchanges, according to CryptoQuant CEO Ki Young Ju.
The investor noted that the stablecoin played a crucial role in the future of BTC, as part of institutional investors held more USDC than any other stablecoin.
Young Ju noted that organizations such as Goldman Sachs, BlackRock and Fidelity held USDC. However, about 94% of these holdings were held in over-the-counter wallets.
The next parabolic #Bitcoin bull run could begin as massive $USDC flow into exchanges.
Currently, 94% of USDC supply resides outside of exchanges, some of which are owned by TradFis like BlackRock, Fidelity, Goldman Sachs, etc.
They move when they receive orders from their customers. pic.twitter.com/Bqenvgugw1
— Ki Young Ju (@ki_young_ju) October 7, 2022
About moving the needle
In related developments, it appears investors have been heeding Young Ju’s call. This was derived from USDC Exchange Supply Ratio data. According to CryptoQaunt, the supply relationship the stablecoin has been up since September 30th.
Despite the October 3 retrace, it was back on the charts. At press time, the USDC’s exchange offer ratio was 0.0656. This indicated that some high-profile investors had reserved more of the stablecoin on exchanges over the past few days.
Source: CryptoQuant
Here is AMBCrypto’s BTC price prediction for 2022-23
However, the recent uptick in this regard should come as no surprise. According to whale-tracking platform Whale Alert, that was because over $200 million worth of USDC had poured into exchanges in the past 24 hours.
Additionally, the platform noted that exchanges including Binance, FTX, Coinbase, and Huobi were beneficiaries of these transactions.
🚨 49,752,998 #USDC (49,720,161 USD) was transferred from an unknown wallet to #FTXhttps://t.co/p4c9BKc9wZ
— Whale Alert (@whale_alert) October 8, 2022
🚨 70,531,070 #USDC (70,524,016 USD) transferred from #USDC Treasury to #Coinbasehttps://t.co/Ov61SLuvsg
— Whale Alert (@whale_alert) October 7, 2022
Interestingly, these whale transactions have impacted the overall exchange inflow volume, which had been declining since October 4th.
According to Glassnode data, the BTC exchange inflow volume was 31,942 at press time. After the daily exchange flow, the on-chain analysis platform reported that $631.5 million was pumped into BTC while $1.2 billion went out. This brought the net flow to negative $588.8 million.
Source: Glassnode
A $17,000 trip?
On the other hand, the current BTC status could take a new turn. Ghoddusifar, a CryptQuant analyst, was among those opinion that BTC could continue down the charts and reach the delta price. Based on his analysis, BTC formed a descending triangle pattern and as such could lead to more bearish sentiment.
Additionally the correlation between the king’s coin and the stock exchange could not be overlooked. With the stock market red, Ghodduasifar believed a drop to $17,000 was not out of the question. He said,
“Equity indices have fallen and are back above the support level. In the event of a collapse of this support level from the exchange, we will definitely see a collapse of the support level for bitcoin.”
However, clues from the BTC four-hour chart indicated that BTC may not be ready for another drop. The Exponential Moving Average (EMA) indicated a recovery rather than a bearish move.
With the 20 EMA (blue) currently above the 50 EMA (yellow), Bitcoin had the potential to end the 2.34 percent 24-hour price decline. Still, the possibility of a reduction could not be ruled out considering that the EMA appeared to be headed down from 20.
Source: TradingView
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