• Crypto bulls are expected to rally in 2023 due to increasing accumulation of stablecoins.
• Risk markets such as cryptos and stocks have gained significant exposure and also benefitted from the US Bank crisis.
• Stablecoin markets are worth more than $134 billion with big whales accumulating USDT and TUSD.
Crypto Bull Rally 2023
The US bank crisis has had an eye-opening effect on the risk markets such as cryptos and stocks, with both experiencing significant exposure and benefit. The current recovery of the markets has raised speculations of an impending upswing, which may be largely attributed to the rise in accumulation of stablecoins. Stablecoin markets are spread out across the world and currently worth more than $134 billion, with a small share circulating within the US. The majority of these stablecoins recently lost their peg from $1 but recovered largely due to major stablecoins like USDT & USDC. Tether minted 2 billion USDT while Binance converted $1 billion of its SAFU funds into TUSD and USDT, indicating that stablecoins are safe in volatile market conditions.
Accumulation by Big Whales
Big whales have been observed actively accumulating both USDT & TUSD tokens. Addresses holding between 100K – 10 million USDT increased from 13% – 15%, while those holding between 1 million – 10 million increased from 20% to 22%. With respect to TUSD, whales holding between 100K – 1 million saw a jump from 44 million to 50 million.
Rise In Bitcoin Prices
Bitcoin prices recently spiked over $27,000 despite investors being extremely cautious about the shaky economic conditions. However, should the US banks crisis worsen further, this bullish scenario may be invalidated along with stringent steps taken by FED who are increasing interest rates to control inflation potentially impacting crypto space adversely.
SEC Targetting Stablecoins
Coinpedia previously reported that SEC is likely targetting stablecoins next as their use cases have seen considerable growth lately. Crackdown on such tokens may prove difficult for authorities given that they are spread across multiple countries worldwide rather than being concentrated within just one or two locations like other cryptos usually tend to be..
The rise in accumulation of stablecoins could trigger a bull rally in 2023 with Bitcoin prices already seeing a spike above $27,000 despite investors being cautious about economic conditions prevailing today.. SEC’s potential crackdown on such tokens may make it difficult for them given its worldwide presence unlike other cryptocurrencies which remain concentrated within specific regions or countries