Bitcoin price drop increases the market cap of stablecoins, and Novogratz buys BTC during the drawdown

Bitcoin price drop increases the share of stablecoins

The recent BTC price collapse to $3,700 caused an overflow of funds into stable assets: on March 13, the volume of transactions from cryptocurrencies to stablecoins set a historical high at $444.2 million, Coin Metrics analysts write.

“The dual impact of Bitcoin’s USD value halving and massive issuance of stablecoins led to stablecoins’ market cap as a percentage of Bitcoin’s doubling in a matter of days,” the study notes.

From March 10 to 22, the market cap of USDT issued on Ethereum increased by $660 million to $3.7 billion. USDC capitalization increased to a historic high — by 57% in 30 days. Analysts note that the demand for stablecoins has grown amid the high volatility of other cryptocurrencies.

Mike Novogratz purchases Bitcoin during the drawdown

Mike Novogratz, CEO of Galaxy Digital cryptocurrency bank, admitted that he had replenished his portfolio during the recent market drawdown. He noted that investors panic and miss the best moment to buy cryptocurrency.

“If there was ever a time — debasement of fiat currencies, monetization of trillions of dollars of debt, this is the time for Bitcoin,” he said.

BTC was designed as an alternative to fiat money when “central banks run amok.” According to the businessman, this moment has come — regulators are taking unprecedented measures to strengthen the economy. Thanks to this, the price of bitcoin will go for another “bull rally”, Novogratz believes.

Peter Schiff: only fools are choosing bitcoin

The famous broker Peter Schiff once again spoke negatively about owners of cryptocurrency.

In his Twitter account, he wrote that “only fools are choosing bitcoin,” whereas you need to invest in gold. He added that in 2020 BTC went up by just, while precious metals rose by more than 7%. If gold is currently trading 2% below the annual maximum, whereas bitcoin is 35% below its 2020 high.

On March 23 gold futures for April delivery added $84.7 an ounce — the highest daily gain in dollars in the history of trading. Now the metal is trading at $1,610, and one bitcoin can be bought for $6,723.

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