“Investors are ready to pounce” – Cryptocurrency Now Braces for $140 Billion Earthquake After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin Crash $140 Billion

Bitcoin
BTC
Cryptocurrency prices are struggling after crashing again in recent months after the collapse of the algorithmic stablecoin terraUSD and its backer Luna — sparking some wild crypto price expectations.

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Bitcoin price rebounded this week around the closely watched $20,000 per bitcoin while Ethereum price built some support above $1,000 per ether. Top Ten Other Cryptocurrencies – BNB
BNB
XRP
XRP
And solana, cardano, and dogecoin – also rose slightly, adding more than $100 billion to the cryptocurrency’s combined market cap from recent lows.

Now that bitcoin and cryptocurrencies have been labeled the “largest Ponzi scheme in human history,” research shows that $140 billion is “ready to be rolled out in bitcoin and altcoins” following the rapid growth of the four largest stablecoins by market capitalization.

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Digital Asset Investment Management (DAIM) analysts wrote in a recent report: “The amount of money on the digital margin has never been greater and signals an abundance of impatient investors ready to pounce on discounted digital assets,” citing the growth of USDT from Tether, and USDC From Circle, BUSD from Binance, and DAI from MarkerDAO.

These four dollar-pegged stablecoins have risen more than 20-fold – from $7 billion to $147 billion – over the past two years.

“This means that the ecosystem has an additional $140 billion ready to be deployed in bitcoin and altcoins,” wrote the DAIM researchers, noting that stablecoins also provide shelter from crypto storms and wild price swings.

Meanwhile, research from Australia-based digital asset management firm Zerocap, first reported by blockworksIt found that with the combined market capitalization of cryptocurrencies dropping by 70%, from $3 trillion to $900 million, the circulating supply of the four largest stablecoins increased by nearly 13%.

“The net growth in the supply of stablecoins fully indicates that users are keeping money on-chain rather than falling back into the dollar,” ZeroCap said. blockworks. “It is possible that a portion of the stablecoins in the chain will be held there while investors are costing the average dollar to invest or are sitting idly by, waiting for an appropriate time to allocate.”

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Circle’s USDC has seen nearly 60% growth over the past eight months, giving it a market cap of $55 billion, Zerocap found — putting USDC within easy reach of $65 billion off the rope. On the contrary, the circulating supply of USDT has recently diminished as investors are out.

“The exponential growth of USDC relative to its peers indicates an increase in investors who value clarity around support for stablecoins,” ZeroCap said, referring to how various stablecoins maintain their peg to the dollar. “Terra’s collapse has burned a large percentage of users into space and is likely to cause a reassessment of the quality of support behind the (intended) stable portion of their portfolio.”

DAIM analysts predict that the bottom of the bitcoin and cryptocurrency market will come towards the end of this year, warning that the price of bitcoin could drop to $10,000.

The DAIM analyst added: “Maximum pain in Bitcoin generally means maximum opportunity.” “There will come a time when the negative news will end.”

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