Exchange stablecoin reserve hits $27B as Bitcoin rises toward $50K 'fair value'

Cryptocurrency exchanges present person much stablecoins connected their books than ever earlier successful a caller motion investors are waiting to bargain Bitcoin (BTC) and altcoins.

Data from on-chain analytics level CryptoQuant shows that this week, exchanges' full stablecoin reserves passed 27 cardinal for the archetypal time.

Exchange users herd stablecoins to accounts

After reaching a erstwhile highest successful precocious December, stablecoin reserves tumbled astatine the commencement of 2022 arsenic BTC/USD and altcoin markets fell successful tandem to multi-month lows.

In caller weeks, however, the inclination has reversed, with speech users sending much to their accounts than astatine immoderate constituent successful past arsenic of Feb. 9.

As such, liquid superior for imaginable deployment into cryptocurrencies from exchanges has ne'er been greater.

Exchange stablecoin reserves chart. Source: CryptoQuant

CryptoQuant information analyzes a full of 43 retail and derivatives trading platforms.

Turning to BTC reserves connected the firm's 21 monitored exchanges, the inclination is 1 of continual withdrawals — adjacent aft the Bitcoin spot terms has accrued astir 50% since week 3 of January.

As of Feb. 9, exchanges had 2.361 cardinal BTC available.

Bitcoin speech reserves vs BTC/USD chart. Source: CryptoQuant

Supply Shock exemplary leaves $5,000 gains unfastened for BTC

As request for BTC persists done the caller gains, fashionable expert Willy Woo argued that Bitcoin's existent just marketplace worth is $50,000.

Related: BlackRock expected to connection crypto trading arsenic Three Arrows exec says agelong Bitcoin, ETH successful 2022

Pointing to his Supply Shock Valuation metric, Woo showed that portion it had decreased successful January, it was inactive supra spot terms movements adjacent aft caller successes.

I enactment it astatine $50k, would emotion to spot their models, assuming they person any. pic.twitter.com/wx9FKXQXnt

— Willy Woo (@woonomic) February 10, 2022

Supply Shock determines the marketplace terms of Bitcoin erstwhile proviso was astatine akin levels to a fixed constituent successful time.

"In marketplace conditions erstwhile the Supply Shock is wrong caller humanities levels, it is imaginable to exemplary a cardinal price. We simply bash a look-back connected erstwhile times the marketplace had a akin Supply Shock and past find the array of prices the marketplace precocious assigned," Woo explained successful an instauration to the instrumentality past year.