Recent volatility has taken a toll on the crypto market, with Bitcoin struggling to regain its former glory. While a slow recovery in digital assets is underway, the long-awaited bull run still seems a long way off. However, a new prediction could change that. Indeed, according to some analyses, the increase in stablecoin issuance could become a catalyst for a future surge in Bitcoin.
Stablecoins Issuance: Triggering a New Wave for Bitcoin?
For a few days now, stablecoins are on the rise, having exploded by $1.533 billion in just 3 days. No less than $2.8 billion was injected by Tether and Circlewith an obvious hope of seeing the crypto market regain its color.
According to Markus Thielenchief researcher at 10x Research, this massive emission trend could be the boost needed to propel Bitcoin to new highs.
- Tether: over $1 billion worth of USDT issued in just one week.
- Circle: nearly 4.5% increase in capitalization for its USD Coin (USDC).
However, Thielen clarifies that This injection of capital must be sustainable to maintain bullish momentum. He warns against false hopes: without a steady 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 will have to wait a little longer before seeing Bitcoin take off again.
Crypto and external factors: a precarious balance
It's not enough to inject billions to see Bitcoin explode, other elements come into playThe macroeconomic context, the decisions of the American Federal Reserve and even electoral polls influence this turbulent market.
Thielen points out that the crypto market, although influenced by stablecoins, remains sensitive to external factors. The example of latest fluctuations This is evidenced by the fact that despite the enthusiasm surrounding stablecoins, Bitcoin has not yet managed to break through the resistance at $60,000 to $61,000.
Without thesupport of a more favorable economic situationnotably more contained inflation in the United States or more accommodating monetary decisions, the gains will remain limited.
In short, even if stablecoins play a key role, they are not the magic wand that will turn every investment into digital gold. The market is still on the lookout, and savvy traders know this well: It's all about timing and patience in this fascinating, yet unpredictable, world of crypto.
Moreover, since April, crypto analysts have noted that the bull run is still awaited. They estimate that it will take about 160 days after the bitcoin halving for it to happen.
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