On-chain data shows that USD Coin’s exchange reserves have increased recently, suggesting that investors may exit volatile markets like Bitcoin.
USD Currency All Exchanges Booked Recently
As indicated by an analyst at CryptoQuant postthere were signs of selling Bitcoin investors to relocate to USDC.
The USD Currency “all exchange reserve” is an indicator that measures the total amount of the currency currently present in wallets of all exchanges.
When the value of this metric increases, it means that investors are either depositing their USDC into exchanges now, or switching to the stable currency of other cryptocurrencies.
Investors usually move into stable currencies like USD Coin when they want to escape the volatility associated with cryptocurrencies like Bitcoin.
On the other hand, when the value of the reserve goes down, it implies that the amount of USDC in exchanges is decreasing at present.
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This kind of trend may be due to investors now being an ideal point to jump into volatile markets, or it may simply be due to owners retiring to personal wallets.
Now, here is a chart that shows the trend in the reserve of all USDC exchanges over the last few months:
Looks like the value of the indicator has been going up in recent days | Source: CryptoQuant
As you can see in the chart above, the reserve of all USD Currency exchanges has observed some upward trend in the last week.
The chart also shows the trend for USDC inflow to exchanges, which is another metric that measures the total amount of the stablecoin moving into centralized exchanges.
It seems that the inflows have not been abnormally high lately, but the reserve is still experiencing an upward movement.
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This could mean that the increase in the reserve is not only due to investors depositing their USDC, but also from them exchanging cryptocurrencies like Bitcoin for the stablecoin.
The trend may suggest that investors are leaving volatile markets at present, due to the current uncertain market conditions. This recent sale may prove to be bearish for the values of Bitcoin and other cryptocurrencies.
At the time of writing, the price of Bitcoin is floating around $ 19.1k, down 7% in the last seven days. Over the past month, the crypto has lost 35% in value.
The chart below shows the trend of the price of the currency over the last five days.
The value of the crypto seems to have declined over the last couple of days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com