- CryptoQuant analyst predicts Bitcoin’s swift departure from the $70K threshold.
- The analyst expressed this view amid surging liquidity inflows via stablecoin.
- Tether injected $2 billion into the crypto market last week.
Crypto Dan, a researcher at data analytic firm CryptoQuant, believes Bitcoin will not remain around the recently attained $70K threshold much longer. Crypto Dan expressed this sentiment after observing the heightened level of liquidity flowing into the crypto market recently. The researcher noted that the liquidity inflow has not been for Bitcoin alone but for altcoins as well.
In particular, the graph accompanying CryptoQuant’s update underscored that the demand for stablecoin is gradually reaching levels that were last observed in 2021. This trend is illustrated by the recent $2 billion injection into the crypto market in under 24 hours by the most prominent stablecoin issuer, Tether. While this transaction occurred over the weekend, five days earlier, Tether minted $1 billion in stablecoin.
According to Dan, this increase in stablecoin supply could indicate growing purchase demand for Bitcoin and other cryptocurrencies. Consequently, he interpreted the current market sentiment as positive.
In parallel, Dan drew attention to the actions of Bitcoin bulls, highlighting their persistent efforts to breach and stabilize at the $70,000 mark. Notably, these attempts proved fruitful, as Bitcoin surged past $72K for the first time in history yesterday.
The CryptoQuant researcher observed that with Bitcoin bulls consistently overpowering resistance from bearish forces, it is only a matter of time before Bitcoin establishes a new benchmark beyond its all-time high.
Similarly, Ki Young Ju, the founder and CEO of CryptoQuant, echoed a comparable sentiment, noting Bitcoin bears cannot prevail unless flows into Bitcoin spot ETFs stop. At press time, Bitcoin trades at $71,747, with a 7.45% gain over the past week.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
