Stablecoin Exchange Flows Could Signal The Next Bull Market

The movement of stablecoins to and from CEX is often a precursor of market momentum, so could be used to signal the end of the bear market. When stablecoins are sent to exchanges in large quantities, it is usually a signal that institutions are preparing to buy. It has not happened yet, as stablecoins such as USDC have been leaving exchanges as the bear market deepens. Tether has around 25% of the supply sitting on trading platforms, according to CryptoQuant. For Binance USD, the number is a much higher 70%, and this is probably due to the yield opportunities that Binance offers for its native stablecoin. A regulated stablecoin market with issuers proving their backing through audits could be a green light for institutions that have been waiting on the sidelines so far.