The circulating provide of TrueUSD (TUSD), a extremely liquid stablecoin, has seen a big enhance of just about $250 million between July 29 and July 30.
Whereas this may seem as a minor uptick for a stablecoin with a circulating provide exceeding $3 billion, historic information means that notable value rallies have usually adopted such spikes within the stablecoin’s provide in Bitcoin.
As an illustration, in early Could 2021, TUSD added $800 million to its provide inside simply 5 days. Then, in mid-July, following an extra enhance of $400 million that took the TUSD provide to a peak of $1.5 billion, Bitcoin started a big rally. Within the days following this peak, Bitcoin’s value soared from $30,800 to its ATH of $68,000 by November.
An identical sample emerged in February 2023. Between February 26 and March 15, the TUSD provide grew by virtually $1.1 billion. This substantial enhance in provide preceded a Bitcoin rally that pushed its value from $20,000 to $30,000.
Extra lately, between June 14 and June 26, TUSD provide skilled one other vital enhance of $1.1 billion. This surge in provide coincided with Bitcoin reclaiming its place above $30,000 for the second time this 12 months.
Curiously, this correlation seems to be distinctive to TUSD. Different stablecoins, equivalent to Tether (USDT), haven’t demonstrated the same sample.
As an illustration, modifications in USDT provide have usually occurred in tandem with Bitcoin’s value actions reasonably than previous them.
The latest surge in TUSD provide might probably sign one other Bitcoin rally on the horizon. Nonetheless, traders ought to method this correlation with warning.
Whereas the info suggests a sample, it doesn’t essentially imply {that a} surge in TUSD provide will all the time result in a Bitcoin rally.
The publish Might a brand new surge in TUSD provide set off one other Bitcoin rally? appeared first on CryptoSlate.
