Stablecoin Surge Signals Traders' Anticipation of Bitcoin Hitting New Record Highs
Summary:
Stablecoin data indicates traders are preparing for Bitcoin to hit a new record high, driven by the upcoming Bitcoin halving event. The increase in stablecoin inflows, particularly Tether (USDT) and USD Coin (USDC), signifies rising interest in crypto assets. According to KuCoin Research, these inflows ignited Bitcoin's rally to historic highs in March. Given the present growth trend, experts forecast BTC could reach $100,000 soon, with some predicting it could fall between $140K and $4.5M per coin, following past post-halving growth patterns.
Data on stablecoins suggests that traders are gearing up for a new record high price for Bitcoin (BTC). KuCoin Research highlights that the surge in stablecoin inflows is likely due to Bitcoin's imminent supply halving event taking place in a week's span. Details from the report indicate that despite a dip in the issuance of Binance USD, True USD (TUSD) and PayPal USD (PYUSD), the market capitalization leaders Tether (USDT) and USD Coin (USDC) are increasing their presence in the market, which signals growing crypto asset interest from European and American investors. The report by KuCoin Research further notes that stablecoin balances surged in the first days of March, prior to Bitcoin reaching its record high, with Tether's USDT experiencing its largest exchange inflow on March 3. Recent days have seen a comparable pattern, with total stablecoin balance across all exchanges growing from $19.7 billion on April 7 to presently standing at $20.34 billion, per Glassnode data, suggesting traders are readying for Bitcoin's upward trend to continue. Meanwhile, the overall market capitalization for stablecoins has risen by 2.8% from $150.42 billion at the start of April to $154.7 billion at the time of reporting, DefiLlama data shows. Tether, making up over 69.1% of total value, boasts a market capitalization of $107.3 billion. According to KuCoin Research, the uptick in stablecoin inflows to exchanges was the starting point for Bitcoin's rally to historic highs last month. Predictions about BTC surpassing $100,000 have also been made by CryptoQaunt user The Moon. Analysts from data tracking firm Santiment support this forecast, stating that BTC may well reach $100,000 soon if the disconnect between crypto and U.S. stocks continues. Econometrics, another price analysis firm, also outlines that if Bitcoin's growth replicates previous patterns post the fourth halving, "BTC could fall anywhere between $140K and $4.5M per coin.” The market awaits to see if Bitcoin will exceed $100,000, however, current stablecoin inflows infer that market players believe BTC will rise further.
Published At
4/13/2024 3:00:00 AM
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