The post Bitcoin Price Set To Surge With $2.5 Billion Stablecoin Inflows appeared on BitcoinEthereumNews.com.

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 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 Further supporting Thielen’s analysis, the on-chain analysis platform Lookonchain reported…

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Filed under: News - @ August 14, 2024 5:23 pm