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This Must Happen For The Next Bitcoin Parabolic Bull Run

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CryptoQuant asserts that Bitcoin (BTC) might see its next parabolic bull run when a substantial amount of USDC flows into exchanges.


Bitcoin (BTC) has retained its significance as a reliable store of value despite its aggressive bear market in the current cycle.

The asset remains stuck in consolidation due to pressures from the bears. Nevertheless, CryptoQuant has highlighted a metric on which BTC could stage its much-anticipated breakout.

CEO at CryptoQuant, Ki Young Ju, asserted late Friday. “The next Bitcoin parabolic bull run might begin when massive USDC flows into exchanges,” he noted in a tweet as he shared his recent take on the firstborn crypto.

Ki highlighted the current dearth of USDC reserves in exchanges. According to him, 94% of the USDC supply is reserved outside exchanges.

Some of these USDC tokens are owned by American entities within traditional finance such as Goldman Sachs, BlackRock, Fidelity Investments, and suchlike.

These American entities have major institutional clients who make occasional demands for BTC. Ki’s assertion is hinged on the sheer magnitude of demand for BTC. These institutional clients are capable of making, driving massive interest into Bitcoin, and propelling a price run.

Notwithstanding, the American financial giants who own these clients prioritize USDC, whose reserves appear to be currently stationed outside exchanges, indicating that they are not yet ready to make any moves to purchase BTC.

“They’ll move when they get orders from their clients,” Ki said.

 

Additionally, while crypto-native stablecoins have seen massive inflows into exchanges, USDC sees periodic outflows – a pattern noticed since July 2019. The USDC Exchange Supply Ratio rose sometime in March of 2021, immediately preceding the Bitcoin All time high of November last year. Nevertheless, it has been seeing a dip since then.

On the other hand, stablecoins such as BUSD and USDT have increased within the same timeframe. BUSD’s supply ratio on exchanges currently sits at 70%, while the ratio of USDT’s supply on exchanges is 25%.

“BUSD exchange reserve is growing despite bear markets, which might indicate that crypto-natives are accumulating some coins,” Ki highlighted.

 

As reported by The Crypto Basic, Bitcoin Price Falls Whenever “Moon” Gets the Most Mentions on Twitter. Bitcoin is also likely to dump from the next Fed rate hike announcement as Institutions are not Buying.

The good point is BTC supply on exchanges is continuously falling and is currently at four-year lows reducing massive selloff risks.

Bitcoin is changing hands at $19,512 as of press time, down 2.1% in the past 24 hours. The asset’s journey towards conquering the resistance level at $20k has been met with several oppositions. The last rejection brought BTC below $19,600, but the community expects another retest of the $20k zone, as the asset is showing some bullish momentum at the reporting time.

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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.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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