Rising stablecoin issuance data points to Bitcoin price gearing up for new peaks

Traders are gearing up for Bitcoin’s price to reach a new all-time high, as indicated by stablecoin data. A report from KuCoin Research reveals that the influx of stablecoins is driven by the upcoming Bitcoin supply halving event, which is set to occur in seven days. The report highlights that Tether (USDT) and USD Coin (USDC) issuance continues to rise, reflecting the growing enthusiasm for crypto assets among European and American investors. While Binance USD, True USD (TUSD), and PayPal USD (PYUSD) saw a decline in issuance, the two largest stablecoins by market capitalization continue to enter the market. This increase in stablecoin balances occurred in early March, just before Bitcoin reached its all-time high. Glassnode data shows that Tether’s USDT recorded the highest inflow into exchanges on March 3, increasing by 192% from $806.2 million to $2.466 billion on March 5, coinciding with Bitcoin surpassing its previous all-time high of $69,800. The total stablecoin balance on all exchanges has also been increasing over the past few days, suggesting that traders are preparing to open new positions in anticipation of Bitcoin resuming its uptrend. Furthermore, CryptoQuant data reveals that while stablecoin balances on crypto exchanges have increased recently, the number of transactions depositing stablecoins to exchanges has also grown. The total stablecoin market capitalization has risen by 2.8% from $150.42 billion on April 1 to $154.7 billion, with USDT accounting for over 69.1% of this value. Historically, the growth of stablecoin balances on exchanges and stablecoin market caps have been considered reliable indicators for determining market traders’ positioning. KuCoin Research has determined that growing stablecoin inflows to exchanges kickstarted Bitcoin’s rally to all-time highs in March. Analysts are projecting that Bitcoin could surpass $100,000, with The Moon, a user on the X social network, suggesting that Bitcoin’s current parabolic trend could reach $100,000 by the end of next week. Market data tracking firm Santiment supports this sentiment, stating that if the correlation between crypto and U.S. stocks continues to decrease, BTC could soon hit $100,000. Santiment’s director of marketing, Brian Quinlivan, observed Bitcoin’s divergence from the S&P 500, which has historically been a bullish signal for BTC. Econometrics, a price analysis firm, asserts that if Bitcoin’s growth after the fourth halving follows the same trajectory as previous cycles, BTC could potentially reach anywhere between $140,000 and $4.5 million per coin. The market eagerly awaits whether Bitcoin’s price will reach $100,000 and beyond, but the influx of stablecoins indicates that market participants expect BTC to continue rising. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.