The recent surge in Bitcoin’s price has captured the crypto community’s attention, sparking discussions about the driving forces behind this rally. While theories point to factors like Blackrock’s ETF and short squeezes, emerging data suggest that TrueUSD (TUSD), a stablecoin, may have significantly boosted Bitcoin’s upward momentum.
TUSD’s Impact on Bitcoin’s Rally:
According to data from CryptoViz, TUSD’s circulating supply has experienced substantial increases of over $1 billion on three distinct occasions since 2018: in May 2021, February 2023, and June 2023. Interestingly, Bitcoin embarked on a rally following each surge within a relatively short period.
Distribution and Dominance of TUSD:
Tron accounts for the majority (76.45%) of TUSD’s total supply, followed by Ethereum with a 22.5% share. However, when analyzing the distribution of TUSD among different exchanges, Binance emerges as the overwhelmingly dominant platform.
Growing Dominance of BTC/TUSD Trading Pair:
An intriguing trend has been observed in the trading volumes of the top three BTC spot trading pairs. BTC/TUSD trading volume has surpassed that of BTC/USDT, indicating the increasing dominance of TUSD as a trading pair. CryptoQuant CEO, Ki Young Ju, suggests that TUSD is following a trajectory similar to that of USDT, which could positively impact Bitcoin in the future.
Impending BTC Options Expiration:
Traders are currently facing the expiration of 31,000 BTC options, characterized by a Put Call Ratio of 0.73, a max pain point set at $27,000, and a substantial notional value of $930 million. This data suggests a relatively higher demand for calls, indicating a bullish sentiment among traders. The expiration of these BTC options could lead to increased market volatility and potential price fluctuations.
The role of TUSD in Bitcoin’s recent rally has piqued curiosity and sparked discussions within the crypto community. The substantial increases in TUSD’s circulating supply before Bitcoin’s price surges suggest a potential correlation. As TUSD gains prominence as a trading pair and follows a trajectory similar to USDT, both stablecoins have the potential to influence Bitcoin’s future. Traders must also be mindful of the impending expiration of BTC options, which could impact market dynamics and contribute to increased volatility. Understanding the interplay between stablecoins, trading pairs, and market sentiment becomes crucial for informed decision-making as the crypto market evolves.
