Bitcoin (BTC) has rebounded swiftly, approaching the $60,000 threshold following a recent setback that briefly plunged prices below $50,000.

This recovery appears sustainable, with the “exchange stablecoins ratio”—a metric assessing the proportion of BTC held in centralized exchange wallets relative to stablecoins—indicating diminished selling pressure. According to blockchain analytics firm CryptoQuant, this ratio has declined to its lowest point since February 2023, continuing a downward trend that commenced in June of the previous year.

“This downturn in the exchange stablecoins ratio may signal reduced selling pressure on Bitcoin, as fewer traders are converting their BTC into stablecoins,” CryptoQuant conveyed. “Moreover, this trend could reflect bullish market sentiment, suggesting that traders are holding onto BTC in anticipation of future price increases.”

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Stablecoins, pegged to external assets like the U.S. dollar, serve as a haven against the price volatility inherent in other cryptocurrencies. They are frequently employed to facilitate spot crypto acquisitions and derivatives trading.

Data from TradingView reveals that the combined supply of the two leading stablecoins by market value, tether (USDT) and USD Coin (USDC), has expanded by approximately $2 billion, reaching $150.15 billion since the market crash on August 5. On an annual basis, the combined supply of USDT and USDC has surged by nearly 30%, reflecting a steady inflow of fiat currency into the market, potentially driven by investors seeking to capitalize on lower BTC valuations.

This development aligns with the optimistic outlook expressed by several market analysts.

“Spot ETFs experienced positive net flows on Monday, with BTC (+$28M) and ETH (+$5M) garnering institutional support following the weekend dip. This resilience during periods of market uncertainty may contribute to a long-term reduction in Bitcoin’s volatility. Yesterday, Bitcoin successfully held the $58,500 level we highlighted, pushing above $60,500 before settling around $59,500,” noted Valentin Fournier, an analyst at digital assets research firm BRN.

“The momentum is modest but remains favorable, as we anticipated. We foresee Bitcoin nearing the upper boundary of its trading range ($67,000-$69,000) in the coming weeks,” Fournier added.