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HomeCrypto NewsMarketTether Supply On Exchanges Increasing Signaling Greater Buying Power, While Bitcoin Supply Starts Falling Again

Tether Supply On Exchanges Increasing Signaling Greater Buying Power, While Bitcoin Supply Starts Falling Again

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Bitcoin levels are decreasing while Tether supply is increasing on exchanges.


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According to a recent report by Santiment, Bitcoin supply has been decreasing. The ration of BTC supply is at low levels last seen way back in 2018. Interestingly, the crypto’s supply levels are lowering at a time when the bear market is pressing hard and many analysts and investors anticipate a long crypto winter to set in soon. It’s still not clear what market forces or shifts have led to this dynamic.

 

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On the other hand, the supply levels of Tether (USDT), a stablecoin, have been increasing on exchanges. This may not be surprising for Tether because the company has been known to mint lots of coins. The increase in its supply levels may be a direct impact created by the Fed’s decision to hike interest rates.

Low Bitcoin Levels Are A Good Sign

To some people, the decrease in BTC supply levels may be a bit alarming, but Santiment thinks this is a positive sign. First off, it signals a controlled sell-off in the future. Basically, it indicates a growing HODL culture among BTC investors. The last bear markets saw massive sell-offs that further upset the markets and gave bears more leverage. This is not the case this time around. People seem to be determined to hold onto their stash.

As a matter of fact, a lot of traders have come out to proclaim a buying period, seeing as the crypto winter will last for a while and crypto prices, including Bitcoin’s, will be under pressure especially due to a looming global recession. Since there’s always a bull run after a bear market, people are not willing to sell now. They may also not be willing to sell off even after the bear market.

Glassnode Data

According to the glass node, the d moving average BTC active supply is decreasing, showing more BTC is leaving exchanges.

 

High Tether Supply Signals Strong Buying Power

In the case of Tether, more minted means a growing buying power on the part of investors. People are rushing to get their wealth into the crypto space amid growing fears of increased inflation due to interest hikes and global recession. Inflation tends to devalue wealth, and a lot of people want to avoid that.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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