• Stablecoin withdrawals have reached almost $500 million in the wake of the BUSD news
• Year to date, roughly $2 billion of stablecoins have been withdrawn from exchanges
• On-chain data suggests that the bear market might be coming to an end
Stablecoin Withdrawals Reach Almost $500M
Recent news regarding the SEC vs. Paxos and Paxos halting BUSD minting has caused a surge in stablecoin withdrawals. Over $500 million worth of stablecoins have been withdrawn since Feb. 12, leaving roughly $35.5 billion on exchanges. This marks a decrease of over $2 billion year to date as more people are moving their funds away from exchanges.
On-Chain Data Suggests Bear Market Might End
The recent outflows of stablecoins were initially reported as being directed towards Bitcoin, though these redemptions have slowed down significantly since then. CryptoSlate’s latest market report dives into Bitcoin on-chain data suggesting that the bear market could be close to ending; however, further investigation is needed for a more accurate assessment.
What is STBL?
STBL is a virtual asset that aggregates the data of all ERC20 stablecoins supported on Glassnode. This metric sums up all exchange balances across different kinds of stablecoins such as BUSD, GUSD, DAI, USDP and EURS among others.
Disclaimers
CryptoSlate does not provide any investment advice and readers should do their own due diligence before taking any action related to content within this article. Buying and trading cryptocurrencies should be considered as high-risk activities with potential financial losses involved so necessary precautions need to be taken beforehand.
Conclusion
As we approach mid-February 2021, it appears that more people are moving their funds away from exchanges in favor of other forms of investments such as Bitcoin or other cryptocurrencies. The exact reasons behind this shift remain unclear but it’s likely due to both macroeconomic factors and rumors regarding upcoming regulation changes pertaining to certain types of digital assets like stablecoins or security tokens (STOs).
