Will Bitcoin (BTC) Break its $73.8K ATH Following This Record USDC Transfer?
Bitcoin has been trading around $70,000 after a major retracement that dragged the leading crypto asset below $63,000 briefly. Despite a few flat trading sessions, data reveals that a pump could be in the offing that could further trigger a new wave of buying pressure.
CryptoQuant’s latest analysis reveals a remarkable surge in USDC deposits, surpassing $1.4 billion on Coinbase.
$1.4 Billion USDC Inflow
Stablecoins serve as a bridge between traditional finance and the digital assets market, facilitating seamless transactions. An influx of USDC into the market can signify an increased willingness to purchase because it is pegged to the US dollar, providing stability and liquidity within the crypto ecosystem.
When there’s a surge in USDC entering the market, it typically means that investors or traders are converting their fiat currency (such as US dollars) into USDC to participate in trading. This influx of USDC can indicate confidence in the market and a readiness to deploy capital into various assets, including Bitcoin.
It is also important to note that a similar deposit occurred only once before, on January 9th, 2023, which preceded a notable price surge from a cycle low of $16,800, representing a crucial bottom.
Such a significant deposit could signal a similar turning point, potentially impacting the current market cycle positively, according to the CryptoQuant analyst ‘maartunn’ in his latest update.
“Several hours ago, the largest influx of USDC ever recorded occurred, with over $1.4 billion of USDC deposited on Coinbase. This sizable deposit signals potentially significant buying pressure, as these stablecoins can be utilized to purchase bitcoin.”
Increased Demand for Exposure to Bitcoin
Further validating the bullish momentum is the continued inflows into spot Bitcoin ETFs after flipping positive from five consecutive days of outflows earlier this month.
Additionally, the foray of new participants, such as Hashdex, into the already crowded space to offer such funds to investors, both big and small, depicts a continued demand.
Earlier CryptoQuant report also revealed the sharp rise in monthly demand for Bitcoin from 40,000 to over 213,000 BTC in 2024. As demand surged, the supply of the crypto asset, on the other hand, decreased to 2.7 million, marking the lowest liquidity levels.
Besides the increase in ETF holdings, large-scale investors, known as whales, also greatly influenced this trend.
