Antony Parsons
A significant surge in USDT and other stablecoin inflows to exchanges has been observed by CryptoQuant analysts, with 3.2 billion USDT entering exchanges since the US Presidential election. This marks the highest net flow since November 2021, and is seen as a positive indicator for higher crypto prices ahead.
A Key Factor in Driving Crypto Price Growth
According to CryptoQuant’s Head of Research, Julio Moreno, the increasing market cap of stablecoins is a critical factor in driving cryptocurrency price growth. Data from CryptoQuant shows a net inflow of stablecoins onto centralized exchanges over the past two months, which is positively correlated with higher prices.
A Bullish Outlook for Bitcoin
CryptoQuant CEO Ki Young Ju has revised his Bitcoin price forecast, now predicting that Bitcoin will reach $135,000 this cycle and $112,000 by the end of 2024. This updated forecast takes into account the growing liquidity in the crypto markets, particularly the significant inflows of USDT and other stablecoins to exchanges.
“The continued inflow of stablecoins will provide the necessary liquidity to support these price predictions, making the crypto market more resilient and attractive to investors,” said Ki Young Ju.
Moreno added that larger balances of stablecoins on exchanges are often followed by price increases, highlighting the importance of maintaining and growing stablecoin liquidity in the crypto ecosystem.
A Positive Indicator for the Market
The surge in liquidity is seen as a positive indicator for higher crypto prices, potentially driving Bitcoin’s forecasted rise. The increasing market cap of stablecoins, particularly USDT, is a key factor in driving cryptocurrency price growth. With the current liquidity boost, the crypto market is expected to become more resilient and attractive to investors.
Overall, the significant inflows of USDT and other stablecoins to exchanges, combined with the positive market sentiment following the election, have bolstered investor confidence and increased participation in the crypto markets. As the crypto market continues to grow and mature, CryptoQuant’s analysts will be closely monitoring the trends and providing insights into the future of Bitcoin and other cryptocurrencies.
