Stablecoin data suggests traders are preparing Bitcoin (BTC) prices to hit new all-time highs.
According to a report by KuCoin Research, the increase in stablecoin inflows is being driven by the Bitcoin supply halving event that will take place within seven days.
of report We detail how Tether (USDT) and USD Coin (USDC) issuance continues to increase, reflecting further growing enthusiasm for crypto assets by European and American investors. Binance USD, True USD (TUSD), and PayPal USD (PYUSD) have all seen a decline in issuance, but the two largest stablecoins by market capitalization continue to see inflows into the market.
KuCoin Research analysts wrote:
“In March, the USDT issuance amount increased by 5.825 billion, and the USDC issuance amount increased by 3.83 billion, showing a significant increase compared to the previous month.”
This increase in stablecoin balances occurred in early March, before Bitcoin hit an all-time high.
According to data from analysts at Glassnode, Tether’s USDT recorded its highest inflow to the exchange on March 3, rising from $806.2 million to $2.466 billion on March 5. % increase is detailed. Furthermore, BTC surpassed its all-time high of $69,800 on March 5th.
“During this period, the correlation between USDT and BTC prices on CEX was higher compared to other stablecoins.”
A similar scenario seems to be playing out in recent days, with total stablecoin balances across all exchanges increasing from $19.7 billion on April 7th to $20.34 billion now, according to data from Glassnode. There is. This suggests that traders are preparing to open new positions in hopes of Bitcoin resuming its uptrend.
Additional data from CryptoQuant reveals that while stablecoin balances on crypto exchanges have increased over the past few days, the number of transactions depositing stablecoins on exchanges has also increased over the same period.
Meanwhile, the stablecoin market capitalization increased by 2.8% from $150.42 billion on April 1 to $154.7 billion at the time of publication, according to data from DefiLlama. USDT accounts for over 69.1% of this value, with a market capitalization of $107.3 billion.
Growth in stablecoin balances on exchanges and stablecoin market capitalization have historically been considered good indicators for determining market trader positioning.
According to a study by KuCoin Research, an increase in stablecoin inflows to exchanges began Bitcoin’s rise to an all-time high in March.
“USDT and USDC continue to lead in total issuance and stablecoin inflows to CEX, contributing to pushing BTC to historic highs.”
Analysts predict BTC to exceed $100,000
Bitcoin’s current parabolic trend, according to X social network user The Moon Could reach $100,000 By next weekend.
While The Moon’s predictions seemed ambitious, analysts at market data tracking firm Santiment corroborated this view, saying that if the correlation between cryptocurrencies and US stocks continues to decline, BTC could soon reach 100,000 yen. He claimed that it could reach US$.
In an April 11 YouTube video, Brian Quinlivan, Santiment’s director of marketing, said: observed Bitcoin’s divergence from the S&P 500 is a historic bullish signal for BTC.
The longest bull markets of the past 15 years often occurred when there was little or no correlation between Bitcoin’s price and the S&P 500, Quinlivan said.
“It doesn’t have to be the opposite like this, but if they’re going their own way, that means we can continue to move forward and get to the $80,000 mark that a lot of the bulls out there are frequently mentioning.” “That’s a good sign that we can get to the $90,000, $100,000 level.”
Price analysis company Econometrics claim If Bitcoin’s growth after the fourth halving follows the same trajectory as previous cycles, “Bitcoin could end up somewhere between $140,000 and $4.5 million per coin.” Stated.
“This is certainly a significant range, but the important thing is that the lower limit is in the six-digit range.”
While the market is waiting to see if Bitcoin’s price will reach above $100,000, the influx of stablecoins appears to reflect market participants’ expectations that Bitcoin will rise further.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
