On-chain data shows the exchange inflows related to the stablecoins USDT and USDC have seen a sharp plunge. Here’s what this could mean for Bitcoin and other cryptocurrencies. Stablecoin Exchange Inflows Have Dropped Below Yearly Average In a new post on X, CryptoQuant author Axel Adler Jr has discussed about the latest trend in the Exchange Inflow of the top two stablecoins in the sector, USDT and USDC. The “Exchange Inflow” refers to an on-chain indicator that keeps track of the total amount of a given asset that’s moving into the wallets associated with centralized exchanges. Generally, investors may deposit their coins into these platforms when they want to trade them away, so a high value on the Exchange Inflow can indicate demand for swapping the cryptocurrency. For volatile assets like Bitcoin, this is something that can naturally be bearish for the price. Related Reading: Dogecoin Must Hold This Level—Or Risk A 30% Price Crash In the case of stablecoins, however, their price doesn’t see any impact from exchange deposits, since it always remains, by definition, stable around whatever fiat currency the asset is tracking. That said, stablecoin inflows aren’t without consequence. Investors usually deposit these assets to swap into a volatile cryptocurrency of their choice. As such, coins like Bitcoin can see a bullish effect from an Exchange Inflow spike related to these fiat-tied tokens. Now, here is a chart that shows the trend in the combined Exchange Inflow of the top two stablecoins, USDT and USDC, over the past few years: As displayed in the above graph, the Exchange Inflow of USDT and USDC shot up to a very high value at the end of last year, a sign that the investors were making massive deposits of these stablecoins. Alongside the spike in the indicator, the Bitcoin price observed a rally to a new all-time high (ATH), a potential sign that the stablecoin inflows may have helped provide the fuel for the run. At the peak of the spike, the metric reached a value of $131 billion per day. From the chart, it’s apparent that since then, the indicator has been following a downward trajectory and today, its value has come down to $70 billion per day. Related Reading: Ethereum ETF Frenzy: Inflows Jump 5x While Bitcoin Stalls This represents a significant decline of $61 billion since the high. Though, while the indicator is indeed notably down compared to the peak, its current level is still high in the context of the wider cycle so far. Naturally, if this drawdown in the stablecoin Exchange Inflow keeps up, it could potentially turn out to be a bearish sign for Bitcoin and other digital assets. That said, even though BTC went down earlier in the year, its price is still above the $100,000 mark right now, a possible sign that investors may simply be entering a phase of consolidation. Bitcoin Price Following a surge of about 2.5% over the last 24 hours, Bitcoin has managed to recover back to the $108,100 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Data shows the stablecoins USDT and USDC have been seeing capital inflows recently, something that could turn out to be bullish for Bitcoin. Top 2 Stablecoins Have Seen Their Market Caps Grow Recently In a new post on X, the on-chain analytics firm Santiment has discussed about the latest trend in the market caps of the top two stablecoins: USDT and USDC. Below is the chart shared by the analytics firm, that shows the data for the 30-day change in the market caps of the two cryptocurrencies. As is visible in the graph, the 30-day percentage change in the market cap of USDC has spiked to sharp positive levels recently, implying that the stablecoin has been growing at a rapid rate. Unlike USDC, which has seen sustainable growth for the last few months, USDT kicked off the year 2025 with its 30-day market cap change dipping into the negative territory. Since bottoming at around -2% earlier in the month, though, momentum has returned for the asset as the indicator has just turned back green. Related Reading: Bitcoin HODLer Selloff Extends To 1.1 Million BTC As Profit-Taking Continues This means that at present, both of the two stablecoin giants are enjoying an increase in their market caps. Historically, growth in these fiat-tied tokens is something that has been bullish for Bitcoin and other volatile cryptocurrencies. The reason behind this is the fact that investors who store their capital in the form of stablecoins generally plan to invest into the volatile side of the market eventually. When they buy BTC with their stables, its price naturally receives a positive effect. The most bullish scenario for the sector occurs when both Bitcoin and the stablecoins witness a rise in their market caps. Such a setup implies both sides of the market are getting net capital inflows. When only one rises while the other goes down, it means capital is merely seeing a rotation between the two. The recent inflows into USDT and USDC have come while BTC has been consolidating sideways. This suggests the capital entering into the stables is fresh, as BTC would have gone down if it was otherwise. At the same time, BTC itself isn’t seeing any direct inflows, hence the flat price action. Related Reading: Ethereum MVRV Forms Signal That Last Led To 40% Price Crash Usually, stablecoin holders deposit to centralized exchanges when they want to purchase the volatile cryptocurrencies. Thus, the number of stable deposits into these platforms can tell us about whether large-scaling buying of this type is happening or not. An analyst has shared the data for the metric in a CryptoQuant Quicktake post. From the above chart, it’s apparent that the indicator is following a flat trajectory right now. An increase in it, like the one witnessed earlier, may provide fuel for a further rally for Bitcoin. Bitcoin Price At the time of writing, Bitcoin is floating around $104,800, down 1% in the last week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
On-chain data shows exchanges have continued to receive stablecoin deposits recently, a sign that could be bullish for Bitcoin and other digital assets. Stablecoin Exchange Netflow Has Remained Positive Recently As pointed out by an analyst in a CryptoQuant Quicktake post, stablecoins have been flowing into exchanges recently. The on-chain metric of relevance here is the “Exchange Netflow,” which keeps track of the net amount of a given asset that’s moving into or out of the wallets associated with centralized platforms. When the value of this metric is positive, it means the investors are making net deposits of the coin to exchanges. Such a trend suggests the holders want to trade the asset away. Related Reading: 54% Of Bitcoin Supply Inactive Since 2 Years Despite 500% Price Jump On the other hand, the indicator being negative implies investors prefer to hold onto the cryptocurrency, as they are taking their tokens off into self-custody. The implication of these trends for the wider sector and the asset itself can be different depending on the exact type of coin that’s witnessing the outflows/inflows. In the case of volatile assets like Bitcoin, a positive Netflow can be bearish for the price, as it means the holders are looking to sell. BTC also acts as one of the main transition points for capital in the sector as a whole, so it being sold can be a bad sign for the rest of the coins as well. Stablecoin deposits also imply traders want to sell them, but since their price always remains stable around the $1 mark, the selling has no ‘bearish’ effect on them. Like Bitcoin, the stablecoins act as a gateway for capital into the sector. More particularly, investors invest their money into the stables whenever they want to avoid the volatility associated with other assets. Such holders usually eventually plan to delve into the volatile coins, and once they are ready, they transfer these fiat-tied tokens into exchanges to make the swap. This naturally acts as buying pressure for whatever asset that they are shifting to. As such, positive stablecoin Exchange Netflows are considered bullish for Bitcoin. Now, here is the chart shared by the quant that shows the recent trend in the Exchange Netflow for the stablecoins: From the graph, it’s visible that the stablecoin exchange netflow has mostly been sitting inside the positive territory for the last few weeks. Alongside these inflows, Bitcoin has been breaking record after record, so it’s likely that these stablecoin deposits have been acting as fuel for the asset. Related Reading: Bitcoin Officially In Overheated MVRV Zone, Rally End Near? The indicator’s value has continued to show strength recently, so it seems the investors aren’t done with their BTC accumulation yet. If the earlier trend continues, the latest stablecoin inflows can elongate the rally and perhaps help the asset to finally break through the $100,000 dream target. Bitcoin Price Bitcoin had seen a plunge under the $96,000 level yesterday, but it appears the coin has already bounced back as its price is now trading around $98,400. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
On-chain data shows the exchanges have just received large stablecoin inflows, something that could end up benefiting the Bitcoin rally. Stablecoin Exchange Inflows Have Spiked Recently As pointed out by an analyst in a CryptoQuant Quicktake post, the Exchange Inflow for stablecoins has registered a sharp jump. The “Exchange Inflow” here refers to an on-chain […]
On-chain data suggests the whale entities have bought up around 5% of the supply of the major stablecoins over the past three weeks. Whales Have Been Gobbling Up Stablecoin Supply Recently According to data from the on-chain analytics firm Santiment, whales have been rapidly accumulating the stablecoin supply recently. Whales here refer to investors holding […]
On-chain data shows the Bitcoin Exchange Stablecoins Ratio has plunged to its lowest since March 2023. Here’s what this could mean for BTC. Bitcoin Exchange Stablecoins Ratio Has Been Heading Down Recently As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Exchange Stablecoins Ratio has been declining recently. The “Exchange Stablecoins Ratio” […]