Bitcoin Crypto

Is Over $3 Billion Is Sidelined Waiting to Enter Bitcoin and Altcoins?

Tony Spilotro | April 5, 2019 | 8:00 pm
Bitcoin

Is Over $3 Billion Is Sidelined Waiting to Enter Bitcoin and Altcoins?

Tony Spilotro | April 5, 2019 | 8:00 pm

This week, Bitcoin broke through key overhead resistance at $4,200 and rallied nearly $1,000 in a matter of an hour to over $5,000. The powerful rally may have signaled the end of the bear market that has been plaguing Bitcoin and altcoins for over a year, setting a higher high and capturing the attention of crypto supporters and pundits alike.

As bullish momentum picks up, new capital will flow into the crypto market. But capital that’s been sidelined in the crypto space all along, as much as $3 billion dollars worth, could also flow directly back into Bitcoin and altcoins like Litecoin or Ripple.

$3B in Crypto Just Waiting to Flow Into Bitcoin and Alts

Bullish sentiment in “crypto Twitter” has been ignited ever since Bitcoin’s break from its prior trading range between $3,200 and $4,200. It’s caused even the most bearish analysts to begin to consider bullish scenarios.

One particularly bullish scenario, would see as much as $3 billion in stablecoins that are currently “parked” waiting to enter the market once again, according to Blockfyre founder Jonathan Habicht, Habicht claims that investors currently sitting in Tether, USD Coin, and other fiat-backed stable coins have never actually left the crypto market, and could re-enter at any time.

Related Reading | Crypto Community Speculates On What Triggered Massive Bitcoin Price Rally 

The bullish claim was backed up by eToro senior market analyst Matt Greenspan, who suggests that there could be as much as $3 billion currently waiting for the right time to flow back into Bitcoin and other various altcoins.

But Is Capital Really Ever “Parked” In Tether?

While Tether’s market cap alone supports up to $2 billion of the over $3 billion in “parked” crypto cited by Jonathan Habicht, there’s an argument to be made that much of the funds aren’t ever actually “parked” in Tether, and the capital regularly flows in and out of other coins on the market.

Related Reading | 2019 Crypto Alt Season Kicks Off With Over 20 Altcoins Doubling in Value

As one trader points out, Tether volumes trader over 5 times the entire market cap daily, which suggests that much of Tether is changing hands and flowing in and out of other cryptocurrencies on a regular basis. Therefore, the total $3 billion the analysts are eyeing may never fully make it into Bitcoin or altcoins all at once.

It’s worth noting that much of reported cryptocurrency trading volumes, including Tether have been called into question in recent days, suggesting that wash trading has been running rampant across exchanges in the industry. But the idea that all stable coins will suddenly be dumped in favor of Bitcoin and altcoins will likely never come to light, as there will always be investors who are “tethering up” at the sign of any bearish signals.

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NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

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