Rising stablecoin inflows are a sign of Bitcoin reaching $100K – How?
The post Rising stablecoin inflows are a sign of Bitcoin reaching $100K – How? appeared on BitcoinEthereumNews.com.
Journalist Posted: November 27, 2024 USDT controlled over 70% of the total stablecoin in circulation. Recently, there has been more inflow showing buying sentiment. Bitcoin’s [BTC] price continued its upward momentum, nearing the psychological milestone of $100,000. A critical driver behind this surge is the significant inflow of stablecoins into exchanges, which often signals incoming buying pressure. Additional insights into Bitcoin’s active addresses and exchange netflows provide a comprehensive view of the market dynamics propelling this rally. Stablecoin inflows indicate high buying interest Analysis of the stablecoin exchange netflows chart on CryptoQuant revealed a consistent inflow of stablecoins, particularly in the last few weeks. This trend suggests that investors are preparing to acquire Bitcoin, as stablecoins are a primary gateway for crypto purchases. Source: CryptoQuant At the time of writing, an over $213 million inflow has been recorded, signaling heightened market activity. Active addresses surge as network activity increases Bitcoin’s active addresses, a measure of network usage and activity, have steadily risen with its price and stablecoin inflow. Source: CryptoQuant Analysis of the active address data shows it has spiked to around 1.27 million active addresses. This was its highest number since March, underscoring increased participation in the network. This growth in active addresses suggests heightened investor interest. It aligns with historical patterns of price increases during periods of heightened network activity. Additionally, Bitcoin’s exchange netflow data presents a mixed narrative. While the total inflows highlight increased trading activity, outflows have also risen, indicating accumulation and reduced selling pressure. This balance supports Bitcoin’s steady climb toward $100,000. As of this writing, the netflow was negative, with over 5,000. Purchasing power on the rise? The technical analysis of Bitcoin’s price highlighted key Fibonacci retracement levels at $80,450 and $74,455, offering potential support zones if a pullback occurs. The Parabolic SAR confirmed…
Filed under: News - @ November 27, 2024 4:16 am