In new evidence that investors are waiting to acquire Bitcoin (BTC) and altcoins, cryptocurrency exchanges now have more stablecoins on their books than ever before. According to data from the on-chain analytics site CryptoQuant, exchanges’ total stablecoin reserves surpassed 27 billion for the first time this week. After peaking in late December, stablecoin reserves plummeted at the start of 2022 as the BTC/USD and altcoin markets both sank to multi-month lows. However, the pattern has shifted in recent weeks, with exchange users moving more money to their accounts than at any other time in history as of Feb. 9.
As a result, the availability of liquid cash from exchanges for possible investment into cryptocurrencies has never been larger. CryptoQuant data examines 43 retail and derivatives marketplaces in total.
When it comes to BTC reserves on the firm’s 21 monitored exchanges, the pattern is one of the constant withdrawals — despite the fact that the Bitcoin spot price has grown by about 50% since week three of January.
