TL; DR
Full story
We have some good news, and some ‘meh, could be better’ news.
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According to CryptoQuant, long-term holders are devouring Bitcoin at the fastest pace in more than a year.
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But hey, the lack of stablecoin liquidity could dampen the resulting price increases.
Cool. What does that all mean?
Let’s start with the easy part: long-term holders who buy Bitcoin reduce the available supply and help push prices up over time.
It also sends a signal to the rest of the market: “This could be a good price to get in” – potentially exacerbating the supply crunch and driving prices even higher.
As for the low liquidity of stablecoins, that just means there aren’t that many stablecoins floating around on the exchanges (ready to be used).
And right now, most stablecoins are used to do one thing:
Buy more crypto.
So when prices start to rise, you ideally want to see as many stablecoins as possible listed on exchanges and ready to be traded.
The more stablecoins there are to trade, the greater the potential buying frenzy (and resulting price pump).
Okay, now you know!
