Bitcoin holders shift from panic to cash-buffer discipline as volatility deepens

Bitcoin volatility rose as stablecoin flows surged to $440 billion over the weekend, highlighting investors’ pivot to cash as BTC spot and futures activity decreased.

Bitcoin (BTC) holders are gradually becoming less prone to panic selling and instead building up cash buffers to deploy during discounted BTC buying opportunities. Onchain data supports this view, highlighting a large surge in stablecoin activity, with USD Coin (USDC) and Tether’s USDt (USDT) transfers reaching a combined $440 billion on March 22. 

This shift in investor behavior aligns with the increasing risk-off approach seen in markets as the United States Federal Reserve dismissed near-term interest rate cut expectations, amid rising energy prices due to the ongoing US and Israel-Iran war.

Bitcoin’s recent price action highlights a volatile market. It dropped 3.75% to $67,300 on Sunday before rebounding above $71,700 on Monday, with the move largely driven by news around the US and Israel-Iran war.

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