Stablecoins, such as Tether, USD Coin, and TrueUSD, have become an important source of liquidity in the Bitcoin and crypto market, providing a safe haven for investors to park their funds before making strategic moves. However, industry experts and data analysts have observed that the stablecoin fuel is running low, raising questions about the market's upside potential.
The market cap ratio of stablecoins on exchanges has historically correlated with Bitcoin price rallies, offering insights into investors' sentiment and readiness to deploy funds. The current stablecoin ratio of 0.155 suggests limited room for rapid upward price jumps in Bitcoin, and more stablecoins need to flow into the market to support significant price movements.
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