Once again Stablecoin outflows are getting converted into BTC at a large scale. The last time this happened just before our 40% January rally.

It is no secret that a large amount of money that is tied into Crypto is mostly put in Stablecoins, especially during bear markets this trend accelerates as many think that it is just safer to temporarily put their money on the side as Crypto prices are going down, to then convert back into Crypto once the downtrend is finished (even though we have seen that even stablecoins are not the most stable…).

Thus it has become a bear/bull reversal indicator once we see that a large amount of stablecoins are being withdrawn from exchanges and simultaneously converted into BTC, this shows that the investors that cautiously were sitting on the side are no entering back in the markets as they think most of the downturn is over.

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Stablecoin outflows from exchanges by glassnode

On this chart we can see how we are having those outflows into BTC from stablecoins, right now. And that at the fastest pace since… early January of this year when we were just before the big 40% that we saw in January lifting the BTC price to $23k in a few weeks.

Could this happen again? Possibly as BTC has been bravely sitting at the crucial $25k resistance since days now without any real pullback, showing its relative strength right now. Generally it is good to once again have the confidence of people in the markets that right now is a good time to re-invest.