A widely followed quantitative analyst reveals what he believes could be the catalyst that sparks the next parabolic rally for Bitcoin (BTC).
Crypto Quant CEO Ki Young Ju tells his 306,200 Twitter followers that the massive influx of stablecoin USD Coin (USDC) to crypto exchanges could signal the start of a new Bitcoin bull market.
“The next Bitcoin parabolic bull run may start when massive USDC flows into exchanges.
For now, 94% of the USDC supply is outside exchanges, some of which are owned by TradFis, such as BlackRock, Fidelity, Goldman Sachs, etc.
They will move when they get orders from their customers.”
For now, the head of the analytics firm says that crypto-native stablecoins like Tether (USDT) and Binance USD (BUSD) are moving back to digital asset exchanges.
“For BUSD, 70% of the supply is in exchange. USDT is 25%.
BUSD exchange reserve is growing despite bear markets, which may indicate that crypto-native coins are piling up.”
Looking at Bitcoin, Ki Young Ju says he’s keeping a close eye on an on-chain metric that could indicate BTC is peaking.
“BTC price is now close to the estimated entry price of institutional investors who used Coinbase services such as prime brokerage, custody, etc. If you still believe that institutions drive this market, this bull of hopium can work for you.”
According to the chart shared by the analyst, the Coinbase outflow in-chain weighted average price may indicate the entry price of institutional investors. With the metric closely hugging BTC’s recent price action, it could suggest that institutions and deep-pocketed investors are defending their Bitcoin positions.
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