A Bitcoin-on-chain statistic has still not formed the same condition as in the previous bottom, suggesting that the current low may not have been reached yet.
Stablecoin Exchange Inflows (Top 10) has not shown any spikes recently
As noted by an analyst in a CryptoQuant aftersaw inflows from the top 10 stablecoin exchanges surge during the July 2021 bottom.
The “stable currency change inflow (top 10)” is an indicator that measures the sum of the ten largest stablecoin transactions going to exchanges. The stat includes data from all types of stablecoins.
Since the top ten transfers usually come from the whalesthis indicator can tell us whether whales are active on exchanges or not.
Typically, investors turn to stables when they want to escape the volatility associated with most other cryptos. Once these holders feel that prices are right to re-enter these markets, they buy in other coins using their stablecoins, creating a buying pressure.
When the value of the top 10 inflows of stablecoin exchanges is high, it means whales can send large amounts of stablecoin to exchanges to buy other coins. So, such a trend could be bullish for the prices of cryptos like Bitcoin.
Now, here’s a chart showing the trend in this on-chain indicator over the past few years:
Looks like the value of the metric has been muted in recent days | Source: CryptoQuant
As you can see in the chart above, stablecoin inflows (top 10) to spot and derivatives exchanges are shown separately, as spot platforms are what investors use for converting their coins.
It seems that when the Bitcoin bottom formed in July 2021 during the mini bear period of the time, the spot exchange version of the metric rose sharply.
This implies that whales participated in some heavy buying with their stablecoin reserves during that time, paving the way for a bullish reversal in BTC.
In recent weeks, the top 10 stablecoin inflows to spot exchanges have shown no significant movement, meaning whales are not yet exerting significant buying pressure.
If the past trend is anything to go by, it could be an indication that the current Bitcoin bottom still hasn’t formed.
BTC price
At the moment of writing, The price of Bitcoin floating around $16.8k, down 2% over the past week. Over the past month, the crypto has lost 18% in value.
The chart below shows the recent trend in BTC:
The value of the crypto seems to have declined during the last couple of days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com