The problems experienced in stablecoins increased the trend towards BTC parity, BTC bull seems possible in the event chain.
“Stablecoins”, one of the most important issues in the crypto industry, began to shake. The problems experienced in stablecoins in the past days have left their mark on the crypto market. When we consider the chain of events, BUSD seems to have ignited the crisis in stablecoins. BUSD, the stablecoin of Binance, the world’s most popular and most voluminous crypto exchange, had several problems and worried the crypto investor. The problems with USD Coin (USDC) after the events have made the stablecoin problem even more serious.
Could the problems experienced in stablecoins lead investors to “BTC Parity” crypto trading and start a possible BTC bull run?
Beginning of Chain of Events: Stablecoins Go Away
Considering the performances of stablecoins over the past week, it seems obvious that they are “off purpose”. These assets, which crypto investors call “cash”, “constitute a great risk” for the industry when they deviate from their purpose. The plot started with the BUSD-side crises and escalated when Circle, a USDC issuer after the bankruptcy of Silicon Valley Bank, announced that some of its funds remained in the bank, and the Fed targeted stablecoins. The fact that these assets, which are called stable, ceased to function and “lost their stability”, created an atmosphere of panic in the sector and led to the depreciation of BTC.
Considering USDC, one of the pioneers of stablecoins, a 33.87% dynamism is seen in the short time frame. Seeing such mobility in these assets “has great dangers”. It has been observed that stable assets that crypto investors call “safe havens” can actually go out of function and cause “big mistakes” in crypto trading.
Can the Volume of Stablecoins Switch to the Side of BTC?
When we consider the year 2017, it is seen that BTC parity constitutes a very large part of the crypto trade that took place. Receiving a reaction from $ 26,400 currently, BTC is taking firm steps forward for its market value. Stablecoin side issues were a big factor in converting some of the money in the crypto market to BTC. Has the leader of cryptocurrencies, which has increased by 35 percent in a week, started to create its own bull run?
The realization of the crypto trading pool in stablecoins in recent months has increased confidence in the assets. When we look at the current process, it is seen that the trust in these assets has decreased with the event pattern. Problems with stablecoins and crypto investors escaping from this port can start a migration to the BTC trading pool.
Bitcoin Bull’s Major Criterion: Dominance
With the decrease in confidence in stablecoins, it is observed that the BTC price has risen “hardly” in direct proportion to the BTC dominance. Considering the past processes, a “BTC rally” was observed in the crypto market in 2017. One of the main reasons for this was “due to the unpopularity of stablecoins, crypto trading took place in BTC parity.” Looking back today, we see that BTC really “leads” the industry in fundamental and technical terms. BTC Dominance, which is currently at the resistance level, can step into incredible rises in price and dominance if it breaks the 46.19 percent resistance.
Bull Season in BTC Parities in 2017
The year 2017, which changed the course of crypto history, is still making a name for itself. When we look at the past, we see that the bull seasons are not only stablecoin-based. 2017 saw a 616% increase as BTC rose from $2,760 to $19,800. When we examine the rise in altcoins, incredible increases in value were observed compared to BTC. Considering the events that took place, the rise in the stablecoin parity was pale.
The fact that BTC actually took the flag and rose, created both an incredible volume on its side and a large trading pool in Altcoin/BTC pairs. If we consider XRP, one of the pioneers of altcoins, it is remarkable that XRP/BTC has increased by 3758 percent rather than stablecoin parity.
Considering the historical event chart, it seems likely that BTC will create its own bull season. “BTC, which has found an ardent buyer in the crypto market,” is taking firm steps forward in terms of both dominance and price. The continuation of stablecoin-based problems may accelerate the rise of BTC.
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