- TUSD’s significant supply increases have coincided with Bitcoin rallies on multiple occasions.
- TUSD’s dominance in BTC trading volume has surpassed that of USDT.
Bitcoin’s Recent Surge[BTC]The award has sparked curiosity and debate in the crypto community. While some have attributed the rally to factors such as Blackrock’s ETF or a short squeeze, new data suggests that TUSD, a stablecoin, may have played a major role in Bitcoin’s bullish momentum.
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Impact of TUSD
Data from CryptoViz showed that the circulating TUSD supply has increased significantly by over $1 billion just three times since 2018. These events occurred in May 2021, February 2023 and June 2023.
Interestingly, after each surge, Bitcoin started a rally within a relatively short period of time.
Source: Glassnode
Currently, Tron accounts for 76.45% of the total TUSD supply, followed by Ethereum with a 22.5% share. A closer look at the distribution of TUSD supply across different exchanges reveals Binance’s overwhelming dominance.
An interesting trend emerged when analyzing the trading volume of the top three BTC spot trading pairs. BTC/TUSD trading volume surpassed BTC/USDT, showing the growing dominance of TUSD as a trading pair.
Source: Glassnode
CryptoQuant CEO Ki Young Ju indicated that TUSD is following a similar development as USDT. TUSD no longer seems to act as a direct route for converting cryptocurrencies into fiat currencies. However, it is still possible to convert TUSD to other cryptocurrencies across different exchanges.
Comparing the growth of TUSD and USDT, it becomes clear that both stablecoins have the potential to leverage BTC in the future. While the issuance of new USDT has slowed compared to the rate of redemption, the growing supply of TUSD could continue to impact the market.
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Traders become optimistic
Traders are currently facing the upcoming expiration of 31,000 BTC options characterized by a put-call ratio of 0.73, a maximum pain point of $27,000 and a sizable face value of $930 million, as reported by GreeksLive . This data points to relatively higher demand for calls, indicating bullish sentiment among traders.
The maximum pain point serves as an area of interest for market participants and potentially influences their trading decisions. With such a significant notional value, the expiration of this BTC could lead to increased market volatility and potential price swings.
Source: Greeks Live
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