People are joking that Bitcoin is the new stable coin because it hasn’t moved much recently despite US equities entering a correction. Meanwhile many big name stable coins have been released at once. Is this stable coin season?
I would say to that:
- Yes, this is clearly stable coin season. Most cryptos are abnormally stable and meanwhile we just had a bunch of major stable coins released. We went from having just USDT last year to now having a large array of choices, some even regulated in the US and backed 1:1 by USD (like the Coinbase/Circle project USDC). With stable crypto assets (for the moment) and so many stable coins, how could we not look back on this as the season of the stable coin (AKA stable coin season).
- No, Bitcoin isn’t the new stable coin, that idea is some famous last words if I’ve ever heard them. Back last fall there was this meme that had Bill Murray from groundhog’s day making a joke about $300 ETH… because every day ETH was $300 when you woke up. That old meme was funny at the time, but then ETH ran, and then it crashed, and now we would all be happy to see $300 ETH again. It is nice to see BTC stable, but whether we see 50% down or 500% up, “BTC is the new stable coin” is destined to become laughable when the winds change and the next cycle comes upon us.
Anyway, that is all I have to say about that. We are in stable coin season, but one shouldn’t expect stability from crypto. Even in 2015 when all appeared stable for a year, it was really just accumulation. Is this distribution or accumulation? I have no clue, if I did though I would tell you and then we would all be rich. 😀
TIP: Small and medium cap alts have been running against BTC and many are in an uptrend. This could be a sign of what is to come with the large caps, or it could be a little side action before more doom. See “I have no clue” comment above. Still worth noting though.