30s Summary
CryptoQuant CEO Ki Young Ju suggests the increasing availability of stablecoins is insufficient to significantly boost Bitcoin’s value given their limited presence on exchanges. Chainalysis data indicates that over 50% of cash sent to countries like Venezuela, Argentina, Brazil, Colombia, and Mexico is in stablecoin form. High rates of stablecoin purchases also occur in high-inflation nations like Turkey. Digital assets ETFs and Coinbase’s US dollars might be a greater force for Bitcoin in the next few months. WonderFi CEO Dean Skurka noted growing institutional interest in BTC, spurred by factors in the US and Canada, may further boost prices.
Full Article
Bitcoin, currently valued at around $70,000, has sparked a lot of conversation about what might drive its price up. Ki Young Ju, the boss of CryptoQuant, suggested that even though the availability of stablecoins (which are cryptocurrencies that match the value of a specific asset or a pool of assets) is increasing, it’s not enough to significantly juice up Bitcoin’s price.
CryptoQuant’s data show that for each dollar’s worth of Bitcoin held in exchanges, there are only six dollars’ worth of stablecoins. This is considered low and could hinder Bitcoin’s growth. In the past month alone, stablecoin reserves had a worth of $30 billion. And while the full value of all stablecoins is about $166 billion, only 21% of them are actually on an exchange ready to be traded. This is a significant drop from last year when over half the stablecoin supply was on exchanges.
Nonetheless, even though more and more stablecoins are popping up, they’re not just being used for trading. Ki Young Ju, for example, pointed out that stablecoins are being used more as a safe way to save money or for sending money abroad. Chainalysis, a crypto company which analyses blockchain data, said that more than 50% of the cash sent to countries like Venezuela, Argentina, Brazil, Colombia and Mexico in the last year was in the form of stablecoins.
This habit is especially prevalent in countries suffering from high inflation, such as Turkey. In fact, Chainalysis reported that compared to their GDP, Turkey has the highest proportion of citizens buying stablecoins.
Finally, Ju has also predicted that what might help push Bitcoin’s price up over the next few months is the availability of digital asset ETFs (exchange traded funds) and US dollars from Coinbase, a popular crypto exchange. Dean Skurka, the CEO of WonderFi, also noticed that strong ETF inflows showed that institutions were becoming increasingly interested in Bitcoin. According to Skurka, this rise in interest from institutions—mixed with financial happenings in the US and Canada—could push Bitcoin’s price up even further. However, only time will tell!