Stablecoins have been experiencing significant growth this year, with USDT leading the way and USDC, backed by Circle, also seeing increased activity. Recent data shows that USDC has seen a surge in deposits on centralized crypto exchanges, reaching a one-year high of $228 million on June 24. This influx of funds suggests that investors may be taking advantage of lower cryptocurrency prices by depositing stablecoins.
Experts believe that this trend indicates a potential opportunity for investors to buy the dip amidst recent market corrections. The ratio of stablecoin market cap to Bitcoin’s market cap is similar to previous all-time highs, suggesting that stablecoins have already been used as buy-side liquidity. However, new inflows will be necessary to drive the next market upswing.
While Bitcoin has seen significant growth over the past year, recent corrections have brought its price down to around $61,400. Despite these fluctuations, experts believe that these declines could present long-term buying opportunities for investors. The recent minor inflow of $31 million into the US spot Bitcoin ETF reversed a week-long outflow streak, indicating a potential shift in market sentiment.
From a technical standpoint, Bitcoin’s RSI has moved from heavily oversold levels to around 33, indicating the potential for significant growth. There are also signs of a hidden bullish divergence on the daily RSI, suggesting that Bitcoin may be on the verge of a bullish breakout.
In light of these developments, experts are optimistic about the future potential for growth in both Bitcoin and stablecoins. This could present unique opportunities for investors to capitalize on market fluctuations and potentially see significant returns on their investments.