[Bitcoin Now] Exchanges' Stablecoin Holdings Remain Steady... Price Retreats from $24,000

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Although the cryptocurrency market is showing signs of recovery, the amount of stablecoins held by exchanges remains stagnant. The fact that the volume of stablecoins used as a means of trading coins is not significantly increasing ultimately suggests that it is difficult for trading activity to rise.

According to cryptocurrency data firm CryptoQuant on the 9th, the total amount of stablecoins held by exchanges as of the previous day was 25,674,250,059, the same as on the 7th. This is a 0.68% decrease compared to 25,850,257,042 on the 1st of this month.

Stablecoins are primarily used in the cryptocurrency market for purchasing coins. Unlike other coins whose values fluctuate in real time, stablecoins are designed to be pegged to fiat currencies, serving as a base currency. Therefore, an increase in the amount of stablecoins held by exchanges typically indicates a boost in coin trading activity and buying pressure.

However, despite forecasts that prices of major cryptocurrencies such as Bitcoin will rise, the amount of stablecoins held by exchanges remains at similar levels as before. As indicators that can predict the activation of cryptocurrency trading, such as the stablecoin holdings of exchanges, have not improved, coin prices are also failing to gain momentum. At around 12:14 AM on this day, the price of Bitcoin surpassed the $24,000 mark for the first time since the 31st of last month, but later gave up the gains and was trading at $23,740 (approximately 31.01 million KRW), up 2.39% from the previous day as of 11:02 AM. Regarding this, cryptocurrency specialized media CoinDesk analyzed that the increase in Bitcoin price was not accompanied by a rise in trading volume.

The US stock market, which shows a synchronized movement, also closed mixed, which appears to have limited the extent of the rise. The Nasdaq index, focused on tech stocks, closed at 12,644.46, down 13.10 points (0.10%) in early morning trading on this day.