Traders are showing signs of anticipation for Bitcoin (BTC) to reach a new all-time high, as indicated by stablecoin data. KuCoin Research has reported an increase in stablecoin inflows, which is believed to be driven by the upcoming Bitcoin supply halving event that will happen in one week. The report reveals that Tether (USDT) and USD Coin (USDC) issuance continues to rise, reflecting growing enthusiasm for crypto assets from investors in Europe and America. While Binance USD, True USD (TUSD), and PayPal USD (PYUSD) experienced declines in issuance, the two largest stablecoins by market capitalization have continued to flow into the market. The increase in stablecoin balances occurred in early March, just before Bitcoin reached all-time highs. Glassnode analysts have observed that Tether’s USDT recorded the highest inflow into exchanges on March 3, increasing by 192% from $806.2 million to $2.466 billion on March 5. Similarly, in recent days, the total stablecoin balance on all exchanges has increased, suggesting that traders are preparing for Bitcoin to resume its upward trend. This is further supported by data from CryptoQuant, which shows an increase in the number of transactions depositing stablecoins to exchanges. The total stablecoin market capitalization has also grown, with USDT accounting for the majority of this value. Historically, the growth of stablecoin balances on exchanges and stablecoin market caps have been considered good indicators for determining market traders’ positioning. In March, growing stablecoin inflows to exchanges kickstarted Bitcoin’s rally to all-time highs. Analysts project that Bitcoin could surpass $100,000, with some suggesting that it could reach anywhere between $140,000 and $4.5 million per coin based on previous cycles. The correlation between Bitcoin’s price and the S&P 500 has been decreasing, which is seen as a bullish signal for Bitcoin’s future growth. While it remains to be seen if Bitcoin will reach $100,000 and beyond, stablecoin inflows indicate that market participants expect Bitcoin to rise further. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.
Growing stablecoin issuance data suggests Bitcoin price poised for new highs