US Strategic Bitcoin Reserve Approval

The long-awaited US strategic Bitcoin reserve approval has arrived, but it did not have the expected impact on the BTC price and the market. While analysts say this news was already priced in, investors are expecting a rally.

Positive Signals from CryptoQuant

At this point, the expected bullish signal came from CryptoQuant. A CryptoQuant analyst stated that the Binance stablecoin reserve reached an all-time high, which is a positive sign for market recovery.

Accordingly, stablecoin (ERC-20) reserves on Binance exceeded $31.3 billion, reaching an all-time high. The analyst noted that an increase in the Binance stablecoin reserve generally indicates positive momentum.

> “When we see an increase in stablecoin reserves on Binance (currently the exchange with the highest trading volume), it shows positive momentum.”

The analyst attributed the stablecoin surge on Binance to two important reasons:
1. Investors preparing to enter the market. Investors choosing Binance for this and directing stablecoin liquidity to the exchange reflects confidence in the market and the exchange.
2. Binance is expanding its existing stablecoin reserves as demand increases.

What is the Impact on Bitcoin and the Market?

The CryptoQuant analyst stated that periods of ATH (All Time High) and positive change in stablecoin reserves are usually accompanied by a large increase in Bitcoin price. The analyst expects that the trend in Bitcoin and cryptocurrencies will change with the Binance stablecoin ATH, saying,

> “Historically, periods when stablecoin reserves on Binance have increased have generally coincided with or even preceded increases in Bitcoin prices and a broader rise in the cryptocurrency market.”

This is not investment advice.