A new Bitcoin Metric (BTC) says that investors are still much more interested in buying than selling at $10,000.
In a Sept. 7 tweet, Ki Young Ju, founder of the chain analysis resource CryptoQuant, revealed his latest tool for tracking Bitcoin investor sentiment.
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CryptoQuant: Bitcoin has „intense buying pressure
Dubbed „Potential Buy/Sell Pressure“, the tool takes the total BTC reserves of the exchanges and divides them by the stablecoin reserves.
The resulting number provides a rough impression of the traders‘ appetite, and is currently skewed upwards.
„BTC still has intense buying pressure. The exchanges have more stablecoins and less BTC compared to the beginning of this year,“ Ki tweeted.
„I think we still have room for the upward trend of BTC.“
Ki added a condition to the data: that traders at the exchanges could use stablecoins to buy non-BTC currencies, as well as keep Tether (USDT) to buy later at lower prices.
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The rise of stablecoins and the fall of BTC reserves
The exchange environment is definitely in a state of flux due to the latest Bitcoin price action.
Tether, the largest stablecoin, has exceeded a total market capitalization of USD 14 billion, while other recent data also suggested that buyers were looking to use stablecoin assets to buy Bitcoin Compass at lower prices.
This came in the form of Glassnode’s stablecoin supply ratio (SSR), which was three times stronger at the end of August than in June 2019, when BTC/USD traded at an identical price point of USD 11,400.
At the same time, as Ki confirms, BTC reserves in the exchanges continue to decline, demonstrating investors‘ continued desire to save, not trade or spend BTC.