Stablecoin issuance data points towards Bitcoin price gearing up for new record highs

Traders are gearing up for Bitcoin (BTC) to reach a new all-time high, as indicated by stablecoin data. KuCoin Research has reported an increase in stablecoin inflows, driven by the upcoming Bitcoin supply halving event. Tether (USDT) and USD Coin (USDC) issuance is on the rise, reflecting growing enthusiasm for crypto assets from European and American investors. While Binance USD, True USD (TUSD), and PayPal USD (PYUSD) saw declines in issuance, the two largest stablecoins by market capitalization continue to flow into the market. In early March, stablecoin balances surged, coinciding with Bitcoin hitting all-time highs. Tether’s USDT registered the highest inflow into exchanges on March 3, increasing by 192%. A similar trend is emerging recently, with the total stablecoin balance on all exchanges rising from $19.7 billion on April 7 to $20.34 billion. Traders are preparing to open new positions, anticipating Bitcoin’s uptrend to resume. The growth of stablecoin balances and market caps on exchanges has historically been considered a reliable indicator of market traders’ positioning. Analysts project Bitcoin to surpass $100,000, with some suggesting it could reach as high as $140,000 to $4.5 million per coin based on previous halving cycles. The correlation between Bitcoin’s price and the S&P 500 has decreased, which is seen as a bullish signal for BTC. However, it is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.