- The significant increase in TUSD supply has coincided with Bitcoin rallies several times.
- TUSD’s dominance in BTC trading volume has surpassed that of USDT.
Bitcoin’s Recent Rise[BTC]The award has sparked curiosity and discussion within the crypto community. While some have attributed the rally to factors such as Blackrock’s ETF or a short squeeze, emerging data suggests that TUSD, a stablecoin, may have played a major role in contributing to Bitcoin’s upside momentum.
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Impact of TUSD
Dates from CryptoViz revealed that TUSD’s circulating supply has seen a substantial increase of more than $1 billion only three times since 2018. These events took place in May 2021, February 2023 and June 2023.
Interestingly, Bitcoin started a rally within a relatively short period of time after each increase.
Source: glasnode
At the moment, Tron accounts for 76.45% of the total TUSD supply, followed by Ethereum with a share of 22.5%. A closer look at the distribution of the TUSD supply across exchanges highlights Binance’s overwhelming dominance.
When analyzing the trading volumes of the top three BTC spot trading pairs, an intriguing trend emerged. The trading volume of BTC/TUSD surpassed that of BTC/USDT, demonstrating the growing dominance of TUSD as a trading pair.
Source: glasnode
CEO of CryptoQuant, Ki Young Ju, suggested that TUSD is following a trajectory similar to that of USDT. TUSD no longer seems to function as a direct turn-off for converting cryptocurrencies to fiat. However, it remains possible to move from TUSD to other cryptocurrencies through various exchanges.
Comparing the growth of TUSD and USDT, it becomes clear that both stablecoins have the potential to benefit from BTC in the future. Although the issuance of new USDT has slowed compared to the redemption rate, the growing supply of TUSD may continue to impact the market.
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Traders are turning bullish
Traders are currently facing the approaching expiration of 31,000 BTC options, characterized by a Put Call Ratio of 0.73, a maximum pain point of $27,000, and a substantial face value of $930 million, as reported by GreeksLive. This data suggests relatively higher demand for calls, indicating optimistic sentiment among traders.
The maximum pain point serves as an area of interest for market participants and can potentially influence their trading decisions. With such a significant notional value, the expiration date of this BTC could lead to increased market volatility and potential price swings.
Source: Greeks Live