"Don't vacation yet": Stablecoin supply suggests Bitcoin and altcoins could rally further

That's to say, there's money waiting to enter the cryptocurrency markets should there be a proper catalyst, be that a positive fundamental development or price trends indicating further growth will be had.There's a lot of cash on the sidelines with an appetite for risk for both BTC and alts.

Rew Kang October 8, 2020.Stablecoin supply surges, boosting Bitcoin & crypto prospects.

The supply of U.S. stablecoins in circulation recently passed $20 billion despite this metric starting the year in the few billions.

Analysts are hopeful that the strong influx of stablecoins in circulation will increase the chances Bitcoin and other cryptocurrencies move higher.

Historical analysis has found that the market capitalization of Tether's USDT is somewhat correlated with the market capitalization of Bitcoin.

The "Stablecoin Supply Ratio," a metric used by these blockchain analytics firms to track how deposits of stablecoins on exchanges affect Bitcoin's price, is printing a "Strong buy" signal.

Cash on the sidelines doesn't only involve stablecoins.

There's actual cash in bank accounts sitting on the sidelines waiting to enter Bitcoin, Ethereum, and other cryptocurrencies.

Square made this much clear just on Thursday when it revealed that it had purchased $50 million worth of Bitcoin for its balance sheet with one percent of its available assets.

Jack Dorsey, who heads the company, has long promoted Bitcoin, calling it the Internet's best contender to become the native currency of the Internet.