Bitcoin Price Soars as Stablecoin Issuance Price Surge Ahead

Traders are preparing for Bitcoin to possibly hit a new peak based on data from stablecoins. According to KuCoin Research’s findings, an increasing number of investors are transferring funds into stablecoins such as Tether and USD Coin. This could be a sign that these individuals are getting ready for Bitcoin’s upcoming halving event, which is set to take place in a week.

In March, the supply of USDT grew by approximately 5.83 billion dollars, while USDC saw an increase of around 3.8 billion dollars in issuance. These numbers represent substantial growth when compared to the preceding month.

Some stablecoins such as Binance USD, True USD, and PayPal USD experienced a reduction in the creation of new units, while demand for Tether and USD Coin remained strong, leading to an increase in their supply.

Starting around early March, there was a noticeable uptick in the use of stablecoins. This trend began right before Bitcoin hit its previous record-breaking price. According to Glassnode’s analysis, Tether saw a substantial surge in deposits on March 3. The inflows grew by an impressive 192%, from $806.2 million to $2.466 billion within just two days. Coincidentally, Bitcoin exceeded its previous maximum price of $69,800 on the same day, March 5.

According to Glassnode’s data, there has been an increase in the total stablecoin balance on exchanges from $19.7 billion to $20.34 billion as of now, compared to April 7th.

Furthermore, the combined worth of stablecoins in the market has risen by 2.8%, reaching $154.7 billion as of April 30th, with USDT making up approximately 69.1% of this total value.

Traders frequently interpret the growing trend of stablecoin deposits and rising market values on exchanges as a reflection of their market positions.

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2024-04-13 13:40