Wed, April 03, 2024 at 08:55

• 

  Joy

  • Hey Annie!

  • I've got some juicy crypto news for you today.

  • The supply of the top three stablecoins, USDT, USDC, and DAI, has increased to a whopping $141.42 billion!

  • That's the highest it's been since May 2022.💰

  • 
• Annie

  • Wow, that's a lot of dough!😮 So, what does this mean for the crypto market?

  
• 

  Joy

  • Well, it's a good sign!

  • It means that capital continues to flow into the crypto market.

  • Plus, other indicators like Bitcoin's MVRV Z-score suggest there's plenty of upside left in Bitcoin.🚀

• Annie

  • But I heard Bitcoin's rally has been losing steam recently...🤔

  
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• 

  Joy

  • True, Bitcoin did hit record highs above $73,500 on March 14 and has struggled to keep gains above $70,000.

  • 

  • But don't fret!

  • The increase in stablecoin supply is a reassuring sign for Bitcoin bulls.🐂

• Annie

  • I see...

  • So, why are stablecoins so important in the crypto market?

  
• 

  Joy

  • Great question!

  • Stablecoins have become the primary mechanism for purchasing cryptocurrencies in the spot market and trading derivatives.

  • They offer a linear payoff where the value of the collateral remains steady regardless of market volatility.

  • So traders don't have to constantly look for hedging their collateral.👌

• Annie

  • Hmm...

  • I see.

  • And what about this MVRV Z-score you mentioned earlier?

  
• 

  Joy

  • The MVRV Z-score measures Bitcoin's market value's deviation from the realized value.

  • When it's below zero, it usually marks market bottoms, while a reading above seven marks tops.

  • Currently, it's at 2.87, which means Bitcoin is far from being overbought or near a major market top.

  • So, there's room for growth!📈

• Annie

  • That's good to hear!

  • So, overall, would you say this news is a good sign for the crypto market?

  
• 

  Joy

  • Absolutely!

  • The continued expansion in the supply of stablecoins is a positive sign for the crypto market.

  • It shows that capital continues to flow into crypto markets.

  • So, yes, this news is definitely bullish for the crypto market!🎉

  • To sum up, this article is considered a 😍Bullish for investors!!