The crypto market has been on a recovery path from the slump it was in. Bitcoin, the benchmark cryptocurrency, has gained over 20% in the last seven days. The market may be poised for even more upside.
According to new data, the stablecoin reserve of all exchanges is currently at an all-time high of $27.2 billion. The increase in stablecoin reserves of exchanges indicates that buying pressure is building in the market.
Exchanges reserve of stablecoins has clinched a new all-time high
Per data from on-chain analysis platform CryptoQuant, investors have been heading back to crypto exchanges. The stablecoin reserves of all exchanges reached $27.2 billion today. The figure is a record high for the metric, surpassing its previous high reached in December.
All Stablecoins Exchanges’ Reserve hits an all-time-high by $27.2B
— CryptoQuant.com (@cryptoquant_com) February 10, 2022
The surge in stablecoin activity on crypto exchanges is indicative of the return of investors looking to buy into the market. This could be a consequence of the return of confidence in the market. The Bitcoin fear and greed index reflects this as well. The fear and greed index has moved out the region of extreme fear which it was in for the greater part of January. It is currently at neutral at 50, the highest level it has been at since November.
Bitcoin Fear and Greed Index is 50 ~ Neutral
Current price: $44,823 pic.twitter.com/Y3TAmSvClz
— Bitcoin Fear and Greed Index (@BitcoinFear) February 10, 2022
Bitcoin and altcoins are primed to go higher.
Bitcoin, the number one cryptocurrency, has been on a rise with the return of bullish sentiments. Bitcoin is currently trading at around $44,785, up 22% in the last week. However, analysts believe that the price is undervalued. Bitcoin on-chain analyst, Willy Woo, argues that the fair price of Bitcoin should be at around $50,000 going by the Bitcoin supply shock valuation metric.
The market expectation is similar for altcoins as key metrics have indicated that several of them are poised to see upticks in price. Going by the MVRV 365D ratio of ADA from Santiment, it is also currently highly undervalued and is poised for a surge according to Ali Martinez, a crypto-market analyst.
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