As we all know, now we are in a difficult time to predict the immediate future of the cryptocurrency market. Some of us (including myself) believe that we are still in a bull market and soon the run should continue. Others believe that we have entered a bear market and bitcoin price will further go down dragging altcoins with it. No one knows the future for certain but we all try to back our theories up with evidence.
In my last brief article, we tried to understand why there is a huge amount of fiat in crypto exchanges. An increase from 5 billion to 15 billion dollars within about 10 months cannot be just coincidence and cannot be for just nothing. I also spotted a possible initiation of a decline of the said value as well.
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So, there are more than $15 billion in exchanges, but how about the BTC amount held in exchanges?
It is declining, which is a bullish sign but I will skip that value and jump right in to see the ratio between BTC and Stablecoin values held in exchanges to get a better understanding.
Stablecoins Ratio (USD) = BTC Reserve in USD / Stablecoins reserve in USD in all exchanges.
As you can see in the attached, Stablecoin ratio is at the lowest within the shown period and appears to be further declining. It means that the value of BTC held in exchanges is low compared to that of stablecoins and keeps declining.
This is another good reason why I am still bullish even though the BTC is struggling around 32k at the moment.