On-chain insights platform CryptoQuant CEO Ki Young Ju says crypto investors did not leave the market despite this year’s downturn.
According to Ju, the current dip that sent Bitcoin (BTC) plunging below $20,000 from an all-time high of nearly $70,000 can be considered the crypto market’s first recession.
“The first recession for crypto markets.
The latest recession was 2007-2009 and it’s called the Great Recession.”
Amid the crypto winter, he says investors are just waiting for the best opportunity to get back to buying digital assets. He says buyers are waiting at the bottom of the bear market.
“Everyone is talking about bearish things, but most of them haven’t left the crypto market. They’re just waiting for the bottom.
Bitcoin marketcap decreased by -70% from the top while stablecoin went down by just -11%.”
Ju says investors have $25 billion worth of stablecoins in exchanges that they can deploy once they are again ready to buy crypto.
“Stablecoins sitting in exchanges are now worth half of Bitcoin reserve. We have $25 billion loaded bullets which can make crypto asset prices go up. The question is when, not how.”
Ju says it could be time for investors to buy Bitcoin again, citing a tweet from popular crypto trader Murad Mahmudo.
“Time to deploy stablecoins to buy BTC.”
Mahmudo says the BTC/USD chart suggests crypto is bottoming out while stablecoins are overbought.
“USDT+USDC / TOTAL under the BTCUSD chart.
Bottoming zone, again.
Stables overbought, crypto oversold.
Important to note that we are in a different monetary regime, so caution must be exercised, but this is where we stand on this multiyear structure.”
Featured Image: Shutterstock/ONYXprj/NittyNice
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