• Bitcoin’s 72 percent pump during the first quarter of the year has led analysts to believe that bulls are preparing for more gains in the second quarter.
• Binance holds approximately 28.5 percent of its total assets in USDT and 23.8 percent in Bitcoin, with BNB only taking about 5 percent.
• Increased stablecoins reserves on centralized exchanges have historically been viewed as optimism of a possible bull run, leading traders to time their entries accordingly.
Crypto Market Rally Hinted by Over $18 Billion USDT Held by Binance
Bitcoin’s Bullish Performance
Following Bitcoin’s 72 percent pump during the first quarter of the year, analysts forecast that bulls might be preparing for more gains in the second quarter. However, Bitcoin bulls have shown increased exhaustion around $28k, with a possible double top formation on higher time frames. Additionally, Bitcoin’s daily RSI indicates a falling divergence in the overbought region.
Altcoin Season Imminent?
As a result, crypto analysts now predict an altcoin season could be approaching soon. Large-cap altcoins like XRP and some medium-sized alts have already started showing early signs of an imminent rally; however, fear of cryptocurrency regulations in the United States has kept some traders at bay.
Binance Accumulating USDT
According to aggregate data from Nansen, Binance Centralised Exchange holds a total of over $64 billion in assets across 42 chains – 28.5% of which is held in USDT while 23.8% is held in Bitcoin and only 5% is held by BNB tokens. The majority of these assets belong to investors on futures and perpetual markets or P2P tradings; additionally, Binance offers users a swap feature allowing them to opt for trading via USDT market instead.
Bull Trap?
Increased stablecoins reserves on centralized exchanges have historically been viewed as optimism towards bullish performance; consequently, traders on Binance are likely timing their entries accordingly with anticipation for further profits from any potential rally caused by altcoins season materializing soon!
Conclusion
The accumulation of USDT by centralized exchanges such as Binance could be an indication that investors are expecting further gains from altcoin season coming up soon; however it remains unclear whether this will bear out or if it will ultimately turn out to be just another ‚bull trap‘.