$10B worth of Stablecoins Withdrawn from Exchanges: Is Bitcoin Next?

• Almost $10B worth of stablecoins have been withdrawn from exchanges in the past six months.
• 70% of the withdrawals occurred due to selling off in BUSD.
• Stablecoin Supply Ratio (SSR) was at an all-time low in the fourth quarter of 2022.

In recent months, the stablecoin market has seen a flurry of activity, with almost $10 billion worth of stablecoins withdrawn from exchanges over the past six months. This trend is largely driven by the selling off of BUSD, which accounts for 70% of the total withdrawals. This indicates a shift in sentiment among investors, who are increasingly turning away from traditional fiat-based stablecoins and moving towards more specialized digital assets.

The Stablecoin Supply Ratio (SSR), which measures the ratio between Bitcoin (BTC) supply and the supply of stablecoins denoted in BTC, is also a key indicator of investor sentiment. The SSR was at an all-time low in the fourth quarter of 2022, suggesting that the increased demand for stablecoins played a role in the surge of Bitcoin prices to $21,000.

The trend of stablecoin withdrawals from exchanges is likely to continue as investors become more comfortable with the idea of using digital assets as a store of value, and as more investors are drawn to the potential of the emerging asset class. As the industry continues to evolve and mature, it will be interesting to see how the use of stablecoins develops, and how they continue to shape the digital asset landscape.