End of Crypto Bear Market: What Does Binance BUSD Data Say?
After a difficult year, traders are pleased with the current rebound in crypto market. The macroeconomic situation does not yet reflect a bullish sentiment on traditional markets. The crypto community was dealt a severe blow by the FTX collapse at 2022’s far end. The altcoin rally is currently being driven by a shift in attitude.
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On chain data shows an interesting trend in Binance USD data, which is relevant to the market recovery following the FTX-related liquidity concerns. According to Crypto Quant data, BUSD reserves have dropped since December 12, 2022. This was the beginning of altcoin price pumping. You may recall that investors moved their assets to Binance Exchange when they feared that FTX exposure would cause closure of companies. The decline in reserves showed that the situation had changed a few weeks later.
“$BUSD reserves have risen substantially since the FTX. It started to fall significantly in December 12. This is when altcoin started to pump. Market liquidity remained the same and began to challenge $ BTC’s dominance.”
This is not a good sign for the crypto market over the medium term. The current rebound is not due to a fresh infusion of capital, as it was during previous bull runs.
Also read: Cardano (ADA), and Solana(SOL) Lead Altcoin Rally with 20% Gains Each
In the last month, Binance USD stablecoin has seen a significant drop in market cap. Since Deceber 14, the BUSD market cap curve has been steadily declining. The stablecoin has lost 40% of its market share since reaching a peak of $24 billion right after the FTX meltdown.
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