As a seasoned market researcher with over two decades of experience under my belt, I’ve seen countless bull and bear markets come and go. However, the recent influx of $2.5 billion in stablecoins into the crypto market has piqued my interest more than ever.
As a researcher at 10x Research, I am anticipating an influx of approximately $2.5 billion in stablecoins, which could potentially trigger a substantial increase in the price of Bitcoin, as outlined in my latest report.
Bitcoin Price Boost Is Incoming
In his recent research paper, Thielen emphasizes the significance of tracking and interpreting the direction of cryptocurrency funds, as they offer valuable clues about market trends that may impact Bitcoin’s price fluctuations. He notes that traders frequently fail to anticipate sudden drops in prices by disregarding the important signals these flows convey. On the other hand, a prolonged rise in fund inflows can boost prices, but this crucial information is often overlooked as well.
As a seasoned trader with years of experience under my belt, I have learned that money flows can be a powerful indicator of price movements, both upward and downward. In April 2024, I personally observed a significant pause in broad money flows, which signaled a price correction for me. This was an important moment in the market, as it allowed me to adjust my trading strategy accordingly.
The report emphasizes the latest operations concerning significant stablecoin publishers, like last night when Tether produced $1 billion worth of USDT, which Thielen notes was classified as stockpiling instead of an instant market release. This classification is crucial because it implies a preliminary move for possible future market maneuvers rather than immediate liquidity augmentation.
As a researcher, I’ve made an intriguing observation about the latest Tether and Circle issuances totaling approximately $2.8 billion. In my view, this significant influx suggests institutional investors are pouring fresh capital into the cryptocurrency market. Historically, such actions have pointed towards bullish sentiments for Bitcoin. If this trend persists, it’s reasonable to anticipate further growth for Bitcoin.
In line with Thielen’s findings, Lookonchain, an analysis platform for blockchain data, reported yesterday via X: “The Tether Treasury minted another billion USDT on Ethereum just 20 minutes ago. Over the last year, a grand total of 32 billion USDT has been minted by the Tether Treasury!”
Moreover, it appears that Lookonchain has uncovered a potential explanation for the significant increase in stablecoin issuance. The organization noted that large quantities of USDT were directed towards Cumberland. They commented, “In just 8 days, Cumberland has pumped $1.04 billion worth of USDT into the cryptocurrency market! Notably, Cumberland received another 141.5 million USDT from Tether Treasury an hour ago and then transferred it to significant exchanges like Kraken, OKX, Binance, and Coinbase.”
More Bullish Catalysts
Cryptocurrency expert Miles Deutscher offers additional evidence for optimism about Bitcoin through analysis X. He points out that the current market situation seems similar to the prolonged consolidation period of 2023, hinting that this phase may be nearing an end thanks to analogous chart patterns and a significant drop in retail enthusiasm.
“The situation now seems strikingly familiar to last August-October. There’s been a rapid decline in retail interest (YouTube views have plummeted dramatically over the past week). Apathy is widespread among current market players, with few compelling narratives emerging. Notably, the price action of #Bitcoin appears to mirror that period as well,” Deutscher commented.
Charles Edwards, the founder of Capriole Investments, brought up a macroeconomic viewpoint, pointing out that the growth of the worldwide money supply has historically influenced increasing Bitcoin prices. In other words, he stated that with the rapid expansion of global currency and the recent breakout from a four-year period of consolidation, we might anticipate good things for Bitcoin. He asked provocatively, “Could this mean positive signs for Bitcoin?” indicating a bullish outlook on the basis of these factors.
At press time, BTC traded at $60,853.
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2024-08-14 17:54