Recent volatility has taken its toll on the crypto market, with Bitcoin struggling to regain its former glory. Although a slow rise in digital assets is underway, the long-awaited bull run still seems far off. However, a new prediction could change the game. According to some analyses, the increase in stablecoin issuance could become a catalyst for Bitcoin's next surge.
Stablecoin issuance: the trigger for a new wave for Bitcoin?
In recent days, stablecoins have been booming, having exploded by $1.533 billion in just 3 days. No less than $2.8 billion was injected by Tether and Circlewith a clear hope of seeing the crypto market regain its color.
According to Markus ThielenChief Research Officer at 10x Research, this massive issuance trend could be the boost needed to propel Bitcoin to new heights.
- Tether: over $1 billion USDT issued in just one week.
- Circle: nearly 4.5% increase in capitalization for its USD Coin (USDC).
However, Thielen points out that this capital injection must be sustainable to maintain upward momentum. He warns against false hopes: without a regular influx of new funds via stablecoins, Bitcoin's recovery could quickly run out of steam.
In other words, if institutional investors continue to support this trend, then yes, a revival could be on the horizon. But if this wave dries up, we'll have to wait a little longer before seeing Bitcoin take off again.
Crypto and external factors: a precarious balance
It is not enough to inject billions to see Bitcoin explode, other factors come into play. The macroeconomic context, decisions by the US Federal Reserve, and even election polls influence this volatile market.
Thielen notes that the crypto market, although influenced by stablecoins, remains sensitive to external factors. The example of the latest fluctuations is proof: despite the enthusiasm around stablecoins, Bitcoin has yet to break the resistance of $60,000 to $61,000.
Without the support of a more favorable environmentincluding lower inflation in the United States or more accommodating monetary decisions, gains will remain limited.
In short, even though stablecoins play a key role, they are not the magic wand that will turn every investment into digital gold. The market remains on the lookout, and savvy traders know it well: it's all about timing and patience in this fascinating but unpredictable world of crypto.
Moreover, since April, crypto analysts have noticed that the bull run is still expected. They estimate that it will take about 160 days after the Bitcoin halving for it to happen.
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