The recent spike in Bitcoin price has caught the attention of the crypto community, fueling discussion about the driving force behind this rally. While theory points to factors such as the Blackrock ETF and short squeezes, emerging data suggests that TrueUSD (TUSD), a stablecoin, may have significantly boosted Bitcoin’s upside momentum.
Impact of TUSD on Bitcoin Rally:
According to data from CryptoViz, the circulating supply of TUSD has seen a substantial increase of over $1 billion on three different occasions since 2018: in May 2021, February 2023, and June 2023. Interestingly, Bitcoin started a rally following each surge in a relatively short period of time. .
TUSD Distribution and Domination:
Tron accounts for the majority (76.45%) of the total TUSD supply, followed by Ethereum with a 22.5% share. However, when analyzing the distribution of TUSD among different exchanges, Binance emerges as a very dominant platform.
Growing Domination of the BTC/TUSD Trading Pair:
An interesting trend has been observed in the trading volume of the top three BTC spot trading pairs. BTC/TUSD trading volume has surpassed BTC/USDT, indicating the growing dominance of TUSD as a trading pair. CryptoQuant CEO Ki Young Ju suggests that TUSD is following a similar trajectory to USDT, which could have a positive impact on Bitcoin in the future.
Upcoming BTC Option Expiration:
The trader is currently facing an option expiration of 31,000 BTC, which is characterized by a Call Out Ratio of 0.73, max sore point set at $27,000, and a substantial idea value of $930 million. This data points to relatively higher demand for calls, indicating a bullish sentiment among traders. Expiration of these BTC options can lead to increased market volatility and potential price fluctuations.
TUSD’s role in the recent Bitcoin rally has aroused curiosity and sparked discussion within the crypto community. The substantial increase in the circulating supply of TUSD before the Bitcoin price spike suggests a potential correlation. As TUSD rose to prominence as a trading pair and followed a similar trajectory to USDT, the two stablecoins have the potential to impact Bitcoin’s future. Traders should also pay attention to the impending expiration of BTC options, which can affect market dynamics and contribute to increased volatility. Understanding the interactions between stablecoins, trading pairs and market sentiment becomes crucial for informed decision making as the crypto market evolves.