A widely followed quant analyst is revealing what he believes could be the catalyst that sparks the next parabolic rally for Bitcoin (BTC).
Crypto Quant chief executive Ki Young Ju tells his 306,200 Twitter followers that the massive influx of stablecoin USD Coin (USDC) to crypto exchanges could signal the beginning of a new Bitcoin bull market.
“The next Bitcoin parabolic bull run might begin when massive USDC flows into exchanges.
For now, 94% of the USDC supply is outside exchanges, some of which are owned by TradFis like BlackRock, Fidelity, Goldman Sachs, etc.
They’ll move when they get orders from their clients.”
“For BUSD, 70% of the supply is in exchanges. USDT is 25%.
BUSD exchange reserve is growing despite bear markets, which might indicate that crypto-natives are accumulating some coins.”
Looking at Bitcoin, Ki Young Ju says that he’s keeping a close watch on one on-chain metric that could signal BTC is bottoming out.
“BTC price now is close to the estimated entry price of institutional investors who have been using Coinbase services like prime brokerage, custody, etc. If you still believe institutions drive this market, this bull hopium could work for you.”
According to the chart shared by the analyst, the Coinbase outflow on-chain weighted average price might 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.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Art Furnace