In recent news, there had been a huge portion of stablecoins that had been transferred to various cryptocurrency exchanges as well as an outflow of BTC assets which were collectively worth about $791 million, following various whales buying at the dip.
Since yesterday, a whopping amount of almost $5.3 billion worth of stablecoins had been successfully deposited into the aforementioned exchanges, highlighting the current sentiment and behavior of many investors as they continue to buy cryptocurrencies when the price is still relatively low than what we had become used to.
Massive stablecoin inflow
Lex Moskovski had mentioned that the recent stablecoin inflow is, in fact, bigger than the previous number of coins backed by the United States Dollar (USD), which had been deposited before Tesla had made its announcement regarding Bitcoin on the 8th of February. This would naturally lead one to assume that the numerous investors have been purchasing BTC despite the recent complications surrounding it.
As if any more confirmation was required, whales had been caught withdrawing a significant portion of 19,639 BTC from various digital trading locations. This had occurred within the span of only 10 minutes. Furthermore, there was another recent withdrawal of just over 15,900 BTC (which is worth approximately $0.5 billion) as the Bitcoin had been transferred from the Bitfinex crypto exchange just yesterday.
Recently, Bitcoin had dropped below the critical support area of $40,000 when it had been announced by 3 Chinese associates that investing in cryptocurrency-related activities and businesses by various financial institutions is not recommended or advised.
However, Elon Musk had tweeted that his company, Tesla, is currently holding ‘diamond hands,’ which led many to speculate that the billionaire is, in fact, holding on to his respective BTC assets very tightly. This culminated in the price of Bitcoin rising by an estimated 40% following the aforementioned dip.
Ultimately though, this development did little more than emphasize the highly volatile and unpredictable nature of the cryptocurrency industry, as many people experienced massive losses and gains within the exact same day. BTC had lost and then subsequently gained $10,000 during this time, and while BTC holders will be glad to hear this, the news has nonetheless convinced many investors that it may finally be time to look elsewhere as far as their investments are concerned, with altcoins such as ETH, MATIC, LTC, BNB, XRP and ADA being among the top choices for investors lately.