Although some experts claim that the next bullish cycle has already started for the cryptocurrency markets, there seems to be a lot of funds waiting to be pumped into the market.
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A total amount of $6 billion is being stored in different stablecoins pegged to the United States Dollar which probably is waiting for a bullshit signal to disrupt the market.
Accounting for this total amount in stablecoin is the US Dollar-backed Tether, TrueUSD, USD Coin, Paxos Standard, Gemini, DAI, BitUSD, and sUSD. All of it accounts to a total of $6 billion.
As per the Messari’s Stablecoin Index report, tether US dollars covers most the total stablecoins with Bitfinex having a large share of its supply. Other big contributors are USDC at $454 million and PAX at around $210 million.
Most crypto traders will also buy the USDT or USDC stablecoins when they want to exit the market due to uncertainties on which direction it will go. It is a safe option for most crypto traders to avoid losing their market position mostly on bear markets.
Founder of QuantumEconomics.io and cryptocurrency market analyst @MatiGreenspan on twitter affirms that the funds sitting on stablecoins will be transfered into Bitcoin and other digital currencies when the market turns bullish.
This will further increase the market uptrend and might cause new highs on Bitcoin and other digital currencies (action) while Bitcoin halving approaches.
Many retail investors will likely join the market when it approaches previous all-time high or records new ones. According to @CL207 a twitter based crypto analyst, most of the investing publics didn’t pay much attention to the Bitcoin price until media houses starts reporting on new all-time high.
While the Bitcoin halving is around the corner, we will likely experience a new all time high in the crypto market.