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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism
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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism

USDC Exchange Reserves Rise As Investors Escape From Bitcoin

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 2:21 pm
3 mins read
Bitcoin And USDC

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On-chain data shows the USD Coin exchange reserves have gone up recently, suggesting that investors may be exiting volatile markets like Bitcoin.

USD Coin All Exchanges Reserve Has Been Climbing Up Recently

As pointed out by an analyst in a CryptoQuant post, there have been signs of selling from Bitcoin investors for moving into USDC.

The USD Coin “all exchanges reserve” is an indicator that measures the total amount of the stablecoin currently present in wallets of all exchanges.

When the value of this metric goes up, it means investors are either depositing their USDC to exchanges right now, or shifting to the stablecoin from other cryptos.

Investors usually move into stablecoins like USD Coin when they want to escape from the volatility associated with cryptos like Bitcoin.

On the other hand, when the value of the reserve heads down, it implies the amount of USDC on exchanges is decreasing at the moment.

Related Reading | Extreme Fear Remains: Recapping What’s Behind The Crypto Market Panic

This kind of trend may be because of investors feeling now is an ideal point for jumping into volatile markets, or it may simply be due to holders withdrawing to personal wallets.

Now, here is a chart that shows the trend in the USDC all exchanges reserve over the last few months:

USDC Reserve Bitcoin Selling

Looks like the value of the indicator has been going up in recent days | Source: CryptoQuant

As you can see in the above graph, the USD Coin all exchanges reserve has observed some uptrend in the last week.

The chart also shows the trend for USDC inflow to exchanges, which is another metric that measures the total amount of the stablecoin moving into centralized exchanges.

It seems like the inflows haven’t been abnormally high recently, but the reserve has still been experiencing upwards movement.

Related Reading | Mining Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The Mining Community

This could mean that the increase in the reserve isn’t just due to investors depositing their USDC, but also from them exchanging cryptos like Bitcoin for the stablecoin.

The trend may suggest that investors are leaving volatile markets for now, due to the current uncertain market conditions. This recent selling can prove to be bearish for the values of Bitcoin and other cryptocurrencies.

Bitcoin Price

At the time of writing, Bitcoin’s price floats around $19.1k, down 7% in the last seven days. Over the past month, the crypto has lost 35% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

The value of the crypto seems to have declined over the last couple of days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
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