Will Coinbase-backed USDC push Bitcoin’s price higher?
- Massive Bitcoin influx on Coinbase
- The secret of Bitcoin's soaring price
To trade cryptocurrencies, you need to use a cryptocurrency exchange. However, there are many stories about exchanges being hacked. It can be a little intimidating when you know that any money deposited on the stock exchange might be stolen.
In addition, many exchanges are located abroad. Depending on the country the exchange is located in, they may have more flexible regulations and security, which could make them targets for penetration.
However, Coinbase is an exchange dedicated to reducing these security issues. It is located in the US and stated that it has never been hacked. It is also easy to use and competitively priced.
For many Coinbase cryptocurrency products, you can even buy them directly in US dollars. In this article, we will take a closer look at Coinbase for a cryptocurrency exchange. As the decline in Tether reserves affects the price of Bitcoin, the Coinbase-backed USDC stablecoin might do the same.
According to the hourly internal flow chart for USDC and CryptoQuant data, the flow gradually increases as transactions increase.
This is directly related to Bitcoin price behavior when depositing whales and institutions. This is the note made by the CEO of CryptoQuantki_young_ju.
He believes that the more USDC deposits with Coinbase, the higher the Bitcoin price. Since the start of 2020, Coinbase's connectivity has become more prominent, when the exchange has completed several OTC transactions.
The size of OTC transactions is unclear, but there are some indicators in the chain that can estimate the number of these transactions.
Massive Bitcoin influx on Coinbase
Based on these indicators, there may still be a large number of OTC transactions. Potential institutional purchases may increase the flow of funds.
In fact, a few weeks ago, a massive influx of bitcoin was noticed on Coinbase, which was the transfer of bitcoin to cold storage.
Together, low Bitcoin liquidity and increased USDC movement could create a bullish scenario for Bitcoin's price. According to Ju, in general, as long as the OTC index continues to say institutional buy, Bitcoin's rise will not stop.
In light of this, will the influx of dollars increase selling pressure?
The secret of Bitcoin's soaring price
Other factors, such as institutional activity in other spot exchanges and open bitcoin contracts on higher derivative exchanges, may indicate a correction. Just as Tether's traffic increased bitcoin selling pressure, so did USDC.
The institutional wall of sale and the steady flow of USDC may be the secret of Bitcoin price adjustment. USDC's growth prompted analysts to compare it to Tether, whose market value rose 10% week after week.
Additionally, Visa's partnership with Circle allows its users to send and receive USDC payments. In line with increased supply, increased access to USDC will increase demand, which may support Tether to stimulate bitcoin price volatility.
In the weeks leading up to ATH's new discovery to delay Bitcoin's price recovery, its trading prices were above $ 18,000, however, Coinbase's and USDC-backed Tether merger could push Bitcoin higher in the short term..