Bitcoin price is set for new highs as Statcoin withdrawal data is increasing.
According to stablecoin data, traders are preparing for the price of Bitcoin (BTC) to hit a new all-time high.
According to a KuCoin research report, the increase in the flow of stable coins is due to the upcoming halving of the supply of Bitcoin, which will occur in seven days.
The report details how Tether (USDT) and USD Coin (USDC) outflows are increasing, reflecting the enthusiasm of European and American investors for crypto assets. While Binance USD, True USD (TUSD) and PayPal USD (PYUSD) all saw price declines, the two largest stablecoins by market capitalization continued to enter the market.
KuCoin research analysts wrote:
“USDT supply increased by 5.825 billion in March, and USDC issuance increased by 3.803 billion, a significant increase compared to the previous month.”
This increase in stablecoin balances occurred in early March, before Bitcoin hit all-time highs.
According to analysts at Glassnode, Tether's USDT hit a record high on the exchange on March 3, rising 192% from $806.2 million to $2.466 billion on March 5. Note that BTC breached its previous all-time high of $69,800 on March 5.
“During this period, compared to other stablecoins, the correlation between the price of CEX and BTC in USDT was higher.”
A similar scenario appears to have been playing out over the past few days, with the total stablecoin on all exchanges increasing from $19.7 billion to $20.34 billion in current value on April 7, according to Glassnode data. This suggests that traders are preparing to open new positions, Bitcoin will continue to rise.
Additional data from CryptoQuant shows that while the balance of Stalkcoin on the crypto exchange has increased over the past few days, the number of transactions transferring the stablecoin to the currency has also increased at the same time.
Meanwhile, the total stablecoin market capitalization grew by 2.8% from $150.42 on April 1 to $154.7 billion at the time of publication, according to DefiLlama data. USDT accounts for over 69.1% of this value, with a market cap of $107.3 billion.
The growth of stablecoin balances on exchanges has historically been considered a good indicator for determining the position of market traders.
As determined by KuCoin Research, the growing flow of Storcoin revenues into exchanges has launched Bitcoin's rally to an all-time high in March.
“USDT and USDC continue to enter CEX with total issuance and stable coinage, helping to push BTC to historic highs.”
Analysts project BTC to reach more than $100,000
According to X social network user The Moon, Bitcoin's current parabolic trend may reach $100,000 by the end of next week.
While Moon's predictions seem ambitious, analysts at market data tracking firm Sentiment confirmed these comments, arguing that BTC could reach $100,000 in the near future if the correlation between the crypto and US stocks continues to weaken.
In an April 11 YouTube video, Brian Quinlivan, director of marketing at Sentiment, looked at Bitcoin's divergence from the S&P 500, a historic bullish signal for BTC.
According to Quinlivan, the longest bull runs of the past 15 years have often occurred when there was no correlation between the price of Bitcoin and the S&P 500.
“It doesn't have to be such a contradiction, but if they're moving in their own way, it's a good sign to go ahead and hit those $80,000, $90,000, $100,000 levels, which many of the bulls out there often refer to,” he said.
According to price analysis firm Econometrics, if Bitcoin's growth follows the same trajectory as previous cycles after the fourth quarter, “BTC could reach $140,000 to $4.5 million per coin.”
“That's definitely the range, but the point is the lower limit is in the six-figure range.”
The price of Bitcoin has reached $100,000 and above is what the market expects, but the steady flow of coins seems to reflect the expectations of market participants that BTC may go higher.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
