$3 Billion Ready To Move Into Bitcoin And Alt-Coins
There is a lot of money sitting on the sidelines, even within the cryptocurrency industry.
People are parking that "cash" in stablecoins, preferring to sit out some of the uncertainty we are seeing.
According to Ryan Selkis, CEO is Messari, there is roughly $3 billion sitting in stablecoins on exchanges. This money could end up shifting into Bitcoin and Ethereum along with other alt-coins.
That is a lot of "dry powder" waiting to enter the market.
Investors often park money in assets they believe are relatively stable in times of crisis. We see how much of the investing community ran to cash (USD) over the last month and a half. In the crypto world, stablecoins are the equivalent of a money market fund.
Back in November, Binance Research published a report on the habits of 69 high-net-worth customers with crypto allocations ranging from $100,000 to $25 million.
The survey found that 96% of those investors are utilizing the stablecoin market, with Tether (USDT) ranking as the top stablecoin by a wide margin.
What is interesting about this is the fact that these investors are not likely doing this as a way to avoid fiat. This is money that will not be leaving the crypto-sphere. When it does move, it will go into BTC or some other cryptocurrency.
For the last two plus years, the cryptocurrency market danced with the bear. Outside of Bitcoin, little has moved up much from its lows. This caused a great deal of concern among the buying public.
Crypto enthusiasts remained loyal though. Many of the whales added to their positions when prices fell.
Perhaps all that money on the sidelines tells us the "smart" money thinks there is further downside before we move up. It is hard to read what is taking place.
Either way, when that money does move back into individual currencies, we will likely see a bullish move.
That $3 billion could turn into a great deal move once momentum starts.
