A widely followed quantitative analyst reveals what he believes could be the catalyst that will trigger the next parabolic rally for Bitcoin (BTC).
Crypto Quant Managing Director Ki Young Ju told his 306,200 Twitter followers that the massive influx of stablecoin USD Coin (USDC) to crypto exchanges could signal the start of a new Bitcoin bull market.
“Bitcoin’s next parabolic bull run could begin when the USDC surges in exchanges.
For now, 94% of USDC supply is outside of exchanges, some of which are owned by TradFis like BlackRock, Fidelity, Goldman Sachs, etc.
They will move when they receive orders from their customers.
For now, the head of the analytics firm claims that crypto-native stablecoins such as Tether (USDT) and Binance USD (BUSD) are returning to digital asset exchanges.
“For BUSD, 70% of the supply is in exchanges. USDT is 25%.
The BUSD FX reserve is growing despite bear markets, which could indicate crypto natives are hoarding coins.
Looking at Bitcoin, Ki Young Ju says he is closely watching an on-chain metric that could signal BTC is bottoming out.
“BTC the price is now close to the estimated entry price of institutional investors who used Coinbase services like prime brokerage, custody, etc. If you still believe institutions are driving this market, this bullish hopium might work for you.
According to the chart shared by the analyst, the weighted average price of on-chain Coinbase exits could indicate the entry price for institutional investors. With the metric tightly hugging recent BTC price action, this could suggest institutions and deep-pocketed investors are defending their Bitcoin positions.
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