Volume of stablecoins on exchanges increases, a potential bullish sign for Bitcoin

Stablecoin levels on exchanges have been steadily rising, although they are not at all-time highs, but they show a possible sign that traders are preparing to buy more Bitcoin (BTC).

As some of the graphs show, The number of stablecoins on exchanges is increasing Besides, the price of Bitcoin has also increased. This could mean a potentially bullish signal, as a similar scenario occurred in the market just before the surge on January 10 following the confirmation of the approval of the Bitcoin Spot ETF.

Now, its side effects Stablecoins have emerged on the Bitcoin market This is because major exchange pairs, such as BTC/USDT or BTC/USDC, are built directly against stablecoins. Therefore, they become the main currencies of exchange when trading.

A reflection of this is the milestone achieved by Tether (USDT), the world’s largest stablecoin, which reached a record capitalization figure of over $100 billion.

As to why this increase could be a bullish sign, it refers to the fact that exchanges are preparing, adding more volume of stablecoins in view of more movements in the market. If Bitcoin Continues to Rise, Demand for Stablecoins Will IncreaseTherefore, the graph is expected to continue growing.

At the moment, Bitcoin is very close to its previous all-time high (ATH), which is around US$68,000. Although it has reached the 70 thousand mark, marking a new ATH, market volatility has also marked an uptrend.