Will Bitcoin (BTC) Break $73.8K ATH Following This Record USDC Transfer?

Bitcoin has been trading near $70,000 after a major move that dragged the top crypto asset short of $63,000. Although there have been a few flat trading sessions, the data suggests that the pump may be in motion, potentially spurring new buying pressure.

CryptoQuant's latest analysis shows a dramatic increase in USDC deposits on Coinbase, surpassing $1.4 billion.

$1.4 billion in revenue

Stablecoins act as a bridge between traditional finance and digital assets markets, facilitating seamless transactions. The entry of USDC into the market may indicate increased buying interest as it is pegged to the US dollar, bringing stability and liquidity to the crypto ecosystem.

When there is a surge in USDC entering the market, it means that investors or traders are converting their fiat currency (such as the US dollar) into USDC in order to participate in trading. This flow of USDC may indicate confidence in the market and readiness to deploy capital into various assets, including Bitcoin.

It is also important to note that the same deposit occurred only once on January 9, 2023, which was before a significant price increase from the cycle low of $16,800, which represents a critical bottom.

According to CryptoQuant Analyst ‘martunn' in a recent update, such high deposits could signal a similar turning point that could have a positive impact on the current market cycle.

Several hours ago, the largest USDC outflow ever recorded occurred, with over $1.4 billion USD deposited on Coinbase. Deposits of this size indicate high buying pressure, as these stablecoins can be used to purchase bitcoin.

Demand for exposure to Bitcoin has increased.

Attesting to the bullish momentum is the entry into the spot Bitcoin ETFs earlier this month after five consecutive days of positive outflows.

Additionally, new entrants like Hashdex in an already crowded space to offer such funds to investors large and small indicate continued demand.

An earlier CryptoQuant report also revealed a sharp increase in monthly demand from 213,000 BTC to 40,000 BTC in 2024. As demand increases, the supply of crypto assets, on the other hand, has decreased to 2.7 million, a sign of low liquidity levels.

In addition to the increase in ETF holdings, large investors known as whales have also been heavily influenced by this trend.