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Bitcoin Stablecoin Supply Ratio Drops as Buying Pressure Mounts

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As Bitcoin remains in its consolidation channel, more on-chain metrics suggest that it could be time to buy once again.

A ratio that measures the amount of Bitcoin compared to stablecoins has fallen back to levels usually indicative of bullish buying momentum.

On-chain analytics provider Glassnode noted the ratio in its latest report stating that the Bitcoin Stablecoin Supply Ratio (SSR) has been declining in 2021 as more stablecoins are minted. When the SSR is low, there is a large supply of stablecoins relative to BTC, which indicates more buying power ready to flow into BTC and other crypto assets.

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“Furthermore, many of these newly minted stablecoins are being deposited onto exchanges, meaning that they are highly liquid and ready to buy up assets such as BTC.”

Stablecoin Surge in 2021

As reported by CryptoPotato, the amount of stablecoins on exchanges has surged so far this year, especially for the one with the second largest market share, USDC.

Glassnode observed that the fact that the SSR is so low, even as BTC maintains high prices, demonstrates just how many new stablecoins have entered the ecosystem recently.

Over a billion of Circle’s dollar-pegged coins have been minted since the beginning of the year and around 90% of these have ended up on exchanges according to the research.

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“The number of USDC on exchanges increased by over 112% in January alone, growing from $431 million to over $915 million. This represents almost $1 billion worth of buying power from USDC alone, poised to move into assets such as BTC.”

Circle has also integrated their payments platform into Blockfolio’s new trading app which is also good news for USDC.

Analyst Willy Woo pointed out that we are now in the “first great consolidation of the 2021 bull market” but there are a number of charts and metrics such as the Bitcoin Spent Output Profit Ratio (SOPR) that remain bullish.

He added that profit-taking has now completed as the SOPR has bounced off the bottom indicating that there are no more sellers willing to sell at a loss.

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Bitcoin Price Outlook

At the time of press, Bitcoin was changing hands for $34,000, right in the middle of its range bound channel. The asset was retreating from an intraday high of $34,700 but had bounced off its daily low of $33,150.

There is still a lot of momentum and positive vibes bubbling under the surface with bigger industry names and celebrities tweeting about Bitcoin. There have been a few higher lows but the support floor just below $30k is still holding for now.

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Ripple

Coinbase CEO Shows Support for Ripple and XRP Amid Battle with SEC

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The XRP Army believes that Brian Armstrong could be hinting at relisting the cryptocurrency

Coinbase CEO Brian Armstrong has displayed support for Ripple in its fight against the U.S. Securities and Exchange Commission.

In a series of recent tweets, Armstrong writes that the company’s case is seemingly going “better than expected.”

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Armstrong stressed that launching attacks against the crypto industry and hurting investors is “politically unpopular.”

The head of the largest American exchange then channeled Ripple’s oft-repeated talking point about the SEC hurting consumers instead of protecting them:

The irony is that the people they are supposedly protecting are the ones attacking them.

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XRP relisting rumors get a new life  

Armstrong’s tweets inevitably reignited rumors about Coinbase potentially relisting XRP on its platform.

The exchange moved to suspend XRP trading after the SEC filed a lawsuit against Ripple on Jan. 19, which triggered a massive price drop.

As reported by U.Today, Coinbase relisting rumors started making the rounds on social media after XRP trading pairs started showing up on the company’s mobile app last month, but it ended up being a bug.

Despite its legal troubles, XRP has remained resilient, with crypto mogul Mike Novogratz recently noting that the cryptocurrency has tripled in value since the agency filed its complaint.

Coinbase’s run-in with the SEC

Ripple started alighting itself with Coinbase after Armstrong publicly called out the SEC for threatening to sue the leading exchange over its yet-to-launch lending offering.

Even though the company caved in to the SEC’s demands and shelved the product in question, it seems like it hasn’t buried the hatchet with the formidable regulator.

Earlier this month, Coinbase proposed replacing the agency with a new cryptocurrency-focused regulator, arguing that the laws from the 1930s were not suitable for the “technological revolution.”

The exchange will have to convince Congress to pass a legislation that will establish a dramatically different regulatory regime that it envisions.

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Bitcoin

Legendary Trader Peter Brandt Challenges Binance with Four Questions about 88% BTC Crash

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Here’s what is unclear for Mr. Brandt about mysterious Bitcoin (BTC) flash-crash of Oct. 21, 2021

Prominent trader and analyst Peter Brandt has taken to Twitter to ask his four questions in the context of the flagship crypto’s 88% dropdown.

What do Binance and Binance.US have in common?

First of all, Mr. Brandt challenged the character of corporate relationships between Binance and Binance.US, its unit focused on American markets.

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Also, Mr. Brandt asks whether Binance is planning to release detailed documents to specify statistics for trades, their volume and prices during the flash-crash.

Then, the trading legend asked about the role of the platform in taking the opposite side of a client fills.

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Besides the Binance CEO and co-founder Changpeng “CZ” Zhao, Mr. Brandt mentioned the Interactive Brokers platform, U.S. watchdogs CFTC and SEC and Gary Gensler, the SEC chairman.

Most expensive “trading algorithm bug” ever?

Also, Mr. Brandt attached a screenshot of a tweet by CZ when Binance’s boss warned his audience about expected volatility spikes across cryptocurrency markets.

Finally, Mr. Brandt added that he never used Binance for trading.

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As covered by U.Today previously, on Oct. 21, 2021, amidst a spending rally, the Bitcoin (BTC) price briefly tanked to the $8,000 level, losing more than 88% in no time.

A similar flash-crash was registered on 26 other low-liquidity exchanges. A Binance.US representative attributed this dramatic plunge to a critical bug in third-party mechanisms by one of the platform’s sophisticated institutional clients.

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Crypto investments a financial backup for Facebook whistleblower

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Frances Haugen, a former Facebook employee turned whistleblower, revealed that her refuge in Puerto Rico is currently being supported by an auspiciously timed cryptocurrency investment.

Haugen worked as a Facebook product manager before accusing the company of spreading controversial and insensitive misinformation. She allegedly possesses numerous confidential research documents, which, according to her, shows that “Facebook prioritizes profit over the well-being of children and all users.” Previously, Facebook has been accused of influencing the 2016 United States presidential election with the help of Russian agencies.

In a follow-up interview with The New York Times, Haugen was asked about her financial situation:

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“For the foreseeable future, I’m fine, because I did buy crypto at the right time.”

The whistleblower also received financial help from nonprofit organizations (NPO) backed by Pierre Omidyar, a co-founder of eBay. However, Haugen clarified that Omidyar’s NPO fundings were only used to finance travel and related expenses.

According to Haugen, shifting to Puerto Rico helped her join her “crypto friends” who enjoy capital tax exemptions on Bitcoin (BTC) and cryptocurrency assets.

Iconic whistleblower and former U.S. Central Intelligence Agency agent Edward Snowden also continues to show support for the Bitcoin economy amid regulatory pressures from governments across the world.

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On Oct. 4, Snowden tweeted about Bitcoin’s tenfold growth despite China’s blanket ban on crypto mining and trading.

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