Stablecoin market caps are rising, hinting that traders believe Bitcoin price will soon follow.
Stablecoin data suggests that traders are preparing for Bitcoin
$67,119 price to hit a new all-time high.
According to a report from KuCoin Research, the increase in stablecoin inflows is driven by the upcoming Bitcoin supply halving event, which will occur in seven days.
$1.00 and USD Coin
USDC
$1.00 issuance continues to increase, reflecting a further rise in enthusiasm for crypto assets from European and American investors. While Binance USD, True USD (TUSD) and PayPal USD (PYUSD) all saw declines in issuance, the two largest stablecoins by market capitalization have continued to flow into the market.
KuCoin Research analysts wrote,
“The issuance of USDT increased by 5.825 billion in March, and USDC issuance increased by 3.803 billion, showing a significant increase compared to the previous month.”
This increase in stablecoin balances occurred in early March, ahead of Bitcoin hitting all-time highs.
Data from analysts at Glassnode detailed Tether’s USDT registering the highest inflow into exchanges on March 3, rising by 192% from $806.2 million to $2.466 billion on March 5. Note that BTC breached its previous all-time high of $69,800 on March 5.
“During this period, compared to other stablecoins, the correlation between USDT in CEX and BTC’s price was higher.”
