Bitcoin Price Set To Surge With $2.5 Billion Stablecoin Inflows: Research Firm
August 14 2024 - 8:00AM
NEWSBTC
An influx of $2.5 billion in stablecoins is anticipated to
potentially drive a significant surge in the Bitcoin price, as
detailed in a new report by Markus Thielen, a market researcher at
10x Research. Bitcoin Price Boost Is Incoming In his latest
research note, Thielen explains the critical importance of
monitoring and analyzing crypto money flows, which provide crucial
insights into market conditions that can either accelerate or
inhibit Bitcoin’s price movements. “Traders are often caught off
guard by price crashes, overlooking the critical signals these
flows offer. However, the inverse is also true; a sustained
increase in money flows can drive higher prices, but many also miss
these indicators,” Thielen writes. Related Reading: Bitcoin Price
Action “Boring” Despite Rapid Accumulation: Is Something Big
Cooking? The researcher explains that money flows can predict price
movements in both directions. In April 2024, signaled a price
correction as “broad money flows largely paused.” Thielen adds, “a
resurgence in certain money flows helped lift prices as markets
approached bottoms. The critical factor was monitoring the
sustainability of these flows, as rallies often lost momentum
without continued support.” The report highlights the most recent
activities involving major stablecoin issuers. Thielen points out
that last night, Tether minted $1 billion in USDT, categorizing it
as an inventory build rather than immediate market issuance. This
distinction is essential as it suggests a preparatory step for
potential future market actions rather than immediate liquidity
injection. Moreover, the researcher details an important
observation regarding recent issuances by Tether and Circle, which
cumulatively amount to nearly $2.8 billion. Thielen interprets this
as a strong indication of institutional investors deploying fresh
capital into the crypto market, which historically signals bullish
conditions for Bitcoin. “If this trend of issuance (not just
minting) continues, Bitcoin could see further gains,” remarks
Thielen. Related Reading: Bitcoin And Altcoin Bull Run Will Return,
Arthur Hayes Reveals Timeline Further supporting Thielen’s
analysis, the on-chain analysis platform Lookonchain reported
yesterday via X: “Tether Treasury minted 1B USDT on Ethereum again
20 mins ago. Over the past year, a total of 32B USDT has been
minted by Tether Treasury!” Additionally, Lookonchain may have
found a reason for the large issuance of new stablecoins. The firm
found that substantial amounts of USDT flowed to Cumberland. They
remarked, “In just 8 days, Cumberland has injected 1.04B USDT into
the crypto market! An hour ago, Cumberland received 141.5M USDT
from Tether Treasury again and transferred it to major exchanges
such as Kraken, OKX, Binance, and Coinbase.” More Bullish Catalysts
Crypto analyst Miles Deutscher delivered another reason to be
bullish on Bitcoin via X. He noted the current market conditions
resemble the multi-month consolidation from 2023, suggesting a
potential end to this phase based on similar chart formations and a
sharp decline in retail interest. “This feels eerily similar to
August-October last year. Retail interest is evaporating fast (YT
views have fallen off a cliff over the past week). Apathy amongst
existing market participants. Lack of clear narratives (and the
#Bitcoin price action looks identical too),” Deutscher stated.
Charles Edwards, founder of Capriole Investments, added a
macroeconomic perspective, noting the expansion of the global money
supply as a historical driver for rising Bitcoin prices. “Global
money supply is exploding up. Plus, we just broke out of a massive
4-year consolidation. What do you think this means for Bitcoin?” he
posed rhetorically, suggesting a bullish outlook based on this
factor. At press time, BTC traded at $60,853. Featured image
created with DALL.E, chart from TradingView.com
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