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The circulating provide of TrueUSD (TUSD), a extremely liquid stablecoin, has seen a big improve of virtually $250 million between July 29 and July 30.
Whereas this would possibly seem as a minor uptick for a stablecoin with a circulating provide exceeding $3 billion, historic information means that notable worth rallies have typically adopted such spikes within the stablecoin’s provide in Bitcoin.
As an illustration, in early Might 2021, TUSD added $800 million to its provide inside simply 5 days. Then, in mid-July, following a further improve 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 worth soared from $30,800 to its ATH of $68,000 by November.
The same sample emerged in February 2023. Between February 26 and March 15, the TUSD provide grew by nearly $1.1 billion. This substantial improve in provide preceded a Bitcoin rally that pushed its worth from $20,000 to $30,000.
Extra just lately, between June 14 and June 26, TUSD provide skilled one other important improve of $1.1 billion. This surge in provide coincided with Bitcoin reclaiming its place above $30,000 for the second time this yr.
Curiously, this correlation seems to be distinctive to TUSD. Different stablecoins, reminiscent of Tether (USDT), haven’t demonstrated the same sample.
As an illustration, modifications in USDT provide have usually occurred in tandem with Bitcoin’s worth actions quite than previous them.
The latest surge in TUSD provide may probably sign one other Bitcoin rally on the horizon. Nevertheless, buyers ought to strategy 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 put up May a brand new surge in TUSD provide set off one other Bitcoin rally? appeared first on CryptoSlate.
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