Bitcoin is trading around $70,000 after a major retracement that briefly pushed the leading crypto asset below $63,000. Despite several sideways trading sessions, data reveals that a pump could be coming soon that could further trigger a new wave of buying pressure.
CryptoQuant's latest analysis reveals a significant spike in USDC deposits, reaching over $1.4 billion on Coinbase.
USDC inflow of $1.4 billion
Stablecoins act as a bridge between traditional finance and digital asset markets, facilitating seamless transactions. The inflow of USDC into the market could mean an increase in buying interest as USDC is pegged to the US dollar, providing stability and liquidity within the cryptocurrency ecosystem.
When there is a surge in USDC entry into the market, it usually means that investors and traders are exchanging fiat currencies (such as USD) for USDC to participate in trades. This USDC inflow could indicate confidence in the market and readiness to put money into various assets, including Bitcoin.
It is also important to note that a similar deposit has only occurred once before, on January 9, 2023. This day preceded a notable price jump from the cycle low of $16,800, which marked a decisive bottom.
According to the latest update from CryptoQuant analyst “maartunn”, such large deposits could signal a similar turning point and could have a positive impact on the current market cycle.
“A few hours ago, the largest USDC inflow ever recorded occurred, with over $1.4 billion USDC deposited into Coinbase. These stablecoins can be used to purchase Bitcoin, so this Large deposits indicate potentially large buying pressure.”
Increased demand for exposure to Bitcoin
Further supporting the bullish momentum, Spot Bitcoin ETF continues to see inflows after turning positive after a five-day streak of outflows earlier this month.
Furthermore, the entry of new participants like HashDex into an already crowded field to offer such funds to investors large and small indicates continued demand.
Formerly CryptoQuant report It was also revealed that the monthly demand for Bitcoin will rapidly increase from 40,000 BTC to over 213,000 BTC in 2024. Meanwhile, as demand soared, the supply of crypto assets declined to 2.7 million BTC, its lowest liquidity level.
In addition to the increase in ETF holdings, large investors known as whales also had a major impact on this trend.
