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The on-chain information for the stablecoin redemptions throughout the latest worth plunge might recommend there aren’t many Bitcoin holders promoting anymore.

Stablecoin Redeem Count Has Remained Low Recently

As identified by an analyst in a CryptoQuant post, massive stablecoin redemptions have normally accompanied main declines within the Bitcoin worth throughout this bear market. A stablecoin is alleged to be “redeemed” when an investor exchanges the token for fiat by the issuer of stated coin.

Investors normally use stablecoins after they wish to escape the volatility related to tokens like Bitcoin. Thus, redemptions of them could be a signal that buyers are exiting the market at the moment. The “stablecoins redeemed supply” is an indicator that measures the overall quantity of such redemptions taking place throughout the market of all forms of stables.

Another metric that retains observe of those withdrawals is the “stablecoins redeem event count,” which, as its identify already implies, measures the overall variety of redemptions happening out there somewhat than the overall sum of their worth.

Now, here’s a chart that exhibits the development in each these stablecoin redemptions indicators over the previous 12 months:

Looks like solely one in all these metrics had its worth elevated in latest days | Source: CryptoQuant

As the above graph shows, throughout the massive declines within the worth of Bitcoin on this bear market to this point, the stablecoins redeemed provide has normally registered excessive values. This development is smart as buyers can be changing to stables to dump throughout the crash, after which redeeming them for fiat.

The stablecoin redeem rely additionally noticed spikes throughout such dumping occasions, apart from the latest one. This implies that within the worth plunges earlier than the most recent one, many buyers at all times took half in stablecoin redemptions, displaying that the market had a uniform and extra pure promoting urge for food.

In the latest decline the place Bitcoin went from above $18k to beneath $17k, nonetheless, the redeemed rely has stayed low whereas the redeemed provide has nonetheless noticed very excessive values. This signifies that just a few whales have been concerned on this dumping occasion, a attainable signal that largescale selling pressure could also be getting depleted out there.

BTC Price

At the time of writing, Bitcoin’s price floats round $16,800, up 1% within the final seven days. Over the previous month, the crypto has gained 2% in worth.

The worth of the coin appears to haven't proven any important deviations in the previous few days | Source: BTCUSD on TradingView

Featured picture from Dmitry Demidko on Unsplash.com, charts from TradingView.com, CryptoQuant.com