Bitcoin Traders Eye Potential Rally With $2.5 Billion In USDT and USDC Inflows
Highlights
- With over $2.5 million in USDT and USDC issued in a week, strong liquidity flow is back in crypto market.
- This shows the rising institutional demand in the market as the Bitcoin ETF inflows resume again.
- All eyes will be on the US CPI inflation data to determine further directional movement in the crypto market.
With eyes on the US CPI inflation data, Bitcoin and the broader crypto market have staged a strong recovery in the recent short covering. The Bitcoin price has surged another 3% today shooting past $61,000 levels amid the strong stablecoin inflows happening over the past week.
Bitcoin Traders Bet on $2.5 Billion Stablecoin Inflow
Bitcoin traders are expecting a potential bullish impact regarding the $2.5 billion stablecoin inflows happening over the past week. As per the data from 10X Research, Tether and Circle have been behind in issuing the USDT and USDC stablecoins over the past which which suggests that institutional investors are ready to inject fresh capital into the market.
The traders believe that this could potentially be the reason behind the recent Bitcoin short covering. Furthermore, inflows into the spot BTC ETFs have also picked up recently suggesting the growing institutional demand for the BTC asset class. Banking giant Goldman Sachs submitted a disclosure to the Bitcoin ETF trading activity for the second quarter revealing its $418 million to these investment products.
10x Research noted that money flows have paused since April 2024, which has led to a subsequent price correction for BTC. However, the resurgence in the money flows through the rising USDT and USDC supply has provided some boost to the broader crypto market. Furthermore, the on-chain shows that Tether has minted more than $1 billion in USDT in the last 24 hours while further transferring them to centralized exchanges (CEXs) including binance, Coinbase, Kraken, etc.
The #TetherTreasury minted 1B $USDT on #Ethereum and transferred 183.2M $USDT to #Cumberland for CEX deposits in the past 13 hours!
Cumberland has received 953M $USDT from Tether and injected 906.7M $USDT into various CEXs, including #Coinbase, #Kraken, #OKX, #Binance, and… https://t.co/XLlzMYRG3X pic.twitter.com/qEUJJ0KWI1
— Spot On Chain (@spotonchain) August 14, 2024
Crypto Market Recovery Amid USDT, USDC Flows
The Bitcoin price has staged a strong recovery this week gaining more than 10% on the weekly charts amid the liquidity resurgence. Furthermore, the broader crypto market has seen similar similar upside with Ethereum leading the altcoin market.
The macro developments this week would be key in deciding the future trajectory of the crypto market from here onwards.
- Senate CLARITY Act Markup Delayed Amid Looming U.S. Government Shutdown
- $1.7T Morgan Stanley to Partner with ZeroHash to Offer Crypto Trading
- Ripple and Securitize Enable RLUSD Support for BlackRock and VanEck’s Tokenized Funds
- Breaking: SEC To Introduce ‘Innovation Exemption’ Rules to Ease Crypto Product Launches
- Asset Manager Pushes 45% HYPE Token Supply Cut, Analyst Calls $100 Price Target by Year-End
- Shiba Inu Price Eyes 25% Rally as Outflows Jump and Whales Buy 62B Coins
- XRP Price Rises on mXRP Launch, Recovery Ahead?
- Solana Price Prediction: $836M Whale Transfer Spark Fear of $200 Retest Before 62% Rebound
- Bitcoin Price Prediction: $150K in Q4 as Gold’s ATH Momentum Sets the Tone
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
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