Could a new surge in TUSD supply trigger another Bitcoin rally?

The circulating proviso of TrueUSD (TUSD), a highly liquid stablecoin, has seen a important summation of astir $250 cardinal betwixt July 29 and July 30.

While this mightiness look arsenic a insignificant uptick for a stablecoin with a circulating proviso exceeding $3 billion, historical data suggests that notable terms rallies person often followed specified spikes successful the stablecoin’s proviso successful Bitcoin.

Graph showing TUSD proviso successful July 2023 (Source: Glassnode)

For instance, successful aboriginal May 2021, TUSD added $800 cardinal to its proviso wrong conscionable 5 days. Then, successful mid-July, pursuing an further summation of $400 cardinal that took the TUSD proviso to a highest of $1.5 billion, Bitcoin began a important rally. In the days pursuing this peak, Bitcoin’s terms soared from $30,800 to its ATH of $68,000 by November.

A akin signifier emerged successful February 2023. Between February 26 and March 15, the TUSD proviso grew by astir $1.1 billion. This important summation successful proviso preceded a Bitcoin rally that pushed its terms from $20,000 to $30,000.

More recently, betwixt June 14 and June 26, TUSD proviso experienced different important summation of $1.1 billion. This surge successful proviso coincided with Bitcoin reclaiming its presumption supra $30,000 for the 2nd clip this year.

Graph showing the correlation betwixt spikes successful TUSD proviso and Bitcoin’s terms from 2021 to 2023 (Source: Glassnode)

Interestingly, this correlation appears to beryllium unsocial to TUSD. Other stablecoins, specified arsenic Tether (USDT), person not demonstrated a akin pattern.

For instance, changes successful USDT proviso person typically occurred successful tandem with Bitcoin’s terms movements alternatively than preceding them.

Graph showing the correlation betwixt USDT proviso and Bitcoin’s terms (Source: Glassnode)

The caller surge successful TUSD proviso could perchance awesome different Bitcoin rally connected the horizon. However, investors should attack this correlation with caution.

While the information suggests a pattern, it does not needfully mean that a surge successful TUSD proviso volition ever pb to a Bitcoin rally.

The station Could a caller surge successful TUSD proviso trigger different Bitcoin rally? appeared archetypal connected CryptoSlate.