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Sellers of bitcoin are often buying other cryptocurrencies, not cashing out

Ethereum and Litecoin have significant trading volumes with Bitcoin, according to an analysis we did of recent trading activity in the crypto universe. This shows that value is being kept in cryptocurrency, rather than being immediately sold for fiat currency.

We took the last 24 hour trading volumes on the top 10 exchanges for each cryptocurrency and analyzed the pairs (e.g. BTC/USD, ETH/BTC etc.).

This data shows that purchases of Ethereum and Litecoin are frequently in crypto. This is dominated by Bitcoin, but in each case Tether (USDT) was also used. A quick review of other altcoins listed shows a similar dynamic. We may do a deeper dive at a later date on this.

We believe that this indicates the market is stabilizing in that a significant amount of money is being circulated within the ecosystem. We see this as a healthy trend, more indicative of maturity than mania.

 

 

Byron Berry

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