- Centralized cryptocurrency exchanges have seen an increased inflow of stablecoins, the highest level of 2023.
- While Bitcoin prices have declined in the short-term, analysts have identified an increase in the purchasing power of the market.
- Bitcoin inflows to exchanges remain relatively low, suggesting BTC holders are accumulating the asset.
Centralized cryptocurrency exchanges have witnessed a spike in stablecoin inflow, hitting the highest level in 2023. The netflow crossed $1 billion, based on data from CryptoQuant. Despite the spike in stablecoin inflow, BTC inflow to exchanges has remained relatively low, suggesting an accumulation by holders.
Also read: Bitcoin vs. Ethereum, race for NFT dominance with Bored Ape-parent Yuga Labs TwelveFold auction
Stablecoin inflows to exchanges hit highest level in 2023
Based on data from crypto intelligence tracker CryptoQuant, stablecoins are pouring into centralized exchanges at a fast pace. Stablecoin inflow to exchanges has hit its highest level since 2023. In the chart below, the netflow of stablecoins has far exceeded 1 billion.
Stablecoin all exchange netflow
A spike in inflow of stablecoins is typically associated with buyers preparing for a move in cryptocurrency prices. Pumped up inflows are considered indicative of rising buying power and demand for cryptocurrencies, driving their prices higher.
In the chart below, it is evident that stablecoins reserves across centralized exchanges has climbed from 22.8 billion to 24.2 billion since March 1.
All Stablecoins: Exchange reserves
Interestingly, Bitcoin inflows to exchanges have remained low, implying accumulation by BTC holders. As purchasing power increases, analysts at CryptoQuant expect Bitcoin to climb higher.
Tether whales continue accumulating, what this means for BTC?
As seen in the chart below, there is a spike in accumulation by USDT whales. Addresses holding large volumes of USDT have climbed consistently since the first week of January. Typically, an increased accumulation of the stablecoin by whales is followed by an increase in Bitcoin price.
Tether whale accumulation
The rising number of whales accumulating the US-Dollar pegged stablecoin Tether could be an indicator of an upcoming rally in Bitcoin. Tether whale accumulation, rising stablecoin inflows to exchanges, and relatively low BTC reserves could all act as “buy signals” for the asset as it struggles to recover from its recent decline below $23,400.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogecoin price bullish outlook intensifies as DOGE turns 10

Dogecoin price has sustained the bullish outlook since October 18, when the broader market turned green, leading meme coins in an uptrend, which is no mean feat. The 65% climb has ushered the dog-themed cryptocurrency to its tenth birthday since its official launch on December 6, 2013.
Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally

The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.
Arbitrum price veers as hard fork proposal receives 99.84% votes in favor

Arbitrum's price surpassed expectations as the altcoin managed to restrict the fluctuation over the past 24 hours. This is because ARB was forecasted to rally following the result of the proposal to essentially hard-fork the chain.
Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization

Bitcoin (BTC) price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused.
Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.