Exchange stablecoin reserves soar past 70 billion USD! USDC doubles in a single month, countdown to the bull run ignited?

The crypto market has received a key signal - the stablecoin reserves of Ethereum and TRON on-chain exchanges have first surpassed $70 billion, setting a new record for the bull run high point of 2021. Analysts point out that this means exchanges are accumulating the strongest potential buying power in history, possibly laying the groundwork for the next round of comprehensive pump for Bitcoin and alts.

$70 billion: All-time highest stablecoin reserves

(Source: CryptoQuant)

According to CryptoQuant's "CryptoOnchain" report, on September 2, the total amount of stablecoins on exchanges once surpassed 70 billion USD and is currently still hovering around 68.3 billion USD.

Previous high record: 2021 bull run, slightly below 60 billion USD

Low Point Review: In late October 2023, only 32 billion dollars

Doubling in a year: The holding amount has doubled from the low point and is highly correlated with the price increase of BTC and ETH.

During the same period, the price of Bitcoin rose approximately 3.3 times from $35,000, while Ethereum increased 2.5 times from $1,890.

USDT remains the leader, USDC becomes the growth engine

USDT: Holding approximately 53 billion USD, accounting for 77%, with steady growth.

USDC: A position of approximately 14 billion USD, accounting for 20%, doubled within a month.

It is worth noting that USDC had only 6.8 billion dollars in exchange holdings on August 1st, which surged to 14 billion dollars in just one month as expectations for interest rate cuts in the United States grew. In contrast, USDT only saw a slight increase of 500 million dollars during the same period.

Why is this a "strong bullish signal"?

CryptoOnchain pointed out that there is a strong positive correlation between exchange stablecoin reserves and crypto asset prices. When stablecoins accumulate in large amounts at exchanges, it indicates that:

Sufficient purchasing power: funds are in place and can be transferred to BTC, ETH, altcoins at any time.

Market sentiment is bullish: investors choose to hold coins and wait for the right time to enter.

Abundant liquidity: Helps drive prices to quickly break through key resistance.

The report bluntly states that the current accumulation of stablecoins is an "extremely strong bullish signal," indicating that a strong bull run may have entered its countdown phase.

What might the market look like next?

Short term: If BTC breaks through recent highs, this batch of stablecoin funds may flow in rapidly, driving prices to accelerate upward.

Medium-term: The explosive growth of USDC holdings may become a catalyst for the activation of the altcoin sector.

Risk: If there are sudden changes in the macroeconomic or regulatory environment, these funds may also be quickly withdrawn.

Conclusion

The exchange stablecoin reserves have surpassed 70 billion USD, not only breaking historical records but also sending a clear signal—the market is accumulating tremendous firepower, waiting to be ignited. With the explosive growth of USDC holdings and rising expectations of interest rate cuts in the United States, the next bull run may be closer than expected.