As the bull market replenishes 'ammunition', the two major stablecoins issued an additional US$10 billion in 30 days

Author: Mary Liu, BitpushNews

As the halving approaches, Bitcoin started the week strong, surging to over $72,000 in early trading on Monday, well shy of its all-time high Less than 3% points to $73,750. After trading near $69,400 over the weekend, Bitcoin bulls started moving higher in the early hours of Monday morning, breaking through the $71,000 resistance and hitting a high of $72,780 shortly after 8 a.m. ET, market data showed. At press time, Bitcoin was trading at $71,845, up 3.5% in 24 hours.

Other coins rising on Monday include Ethereum (up 8%), meme coin Dogwifhat (up 18%) and Pepe (up 10%).

# Digital asset investment products recorded $646 million in inflows last week, data released by Coinshares showed on Monday. Bitcoin-related investment products remained in focus, with inflows totaling $663 million, while those betting against Bitcoin saw outflows total $9.5 million for the third consecutive week, signaling a slight capitulation among bearish investors.

James Butterfill, head of research at Coinshares, said: "Funds so far this year have reached an all-time high of $13.8 billion, currently well above the $10.6 billion in 2021."

On-chain analytics company Santiment believes that ETF trading activity remains at a relatively active level. Analysts at the company said: "Bitcoin ETF trading volume has not slowed down four weeks after BTC broke through new highs. In G BTC, IBIT, F BTC, ARKB, BTC O, BITB and HODL, trader activity remains significantly higher than The turning point started after retail trading began to pour in at the end of February."

They added: "High activity should continue before the halving on April 19, but ETF trading volume and on-chain trading volume It will be interesting to see whether it drops directly after the halving."

Stablecoin activity suggests bulls are preparing for a rebound

10x Research Research director Markus Thielen said that while Bitcoin price has been trading sideways and consolidating since early March, it could resume its climb soon.

Analysts said in a market update on Monday: "After being sharply bullish since January 25, we became cautious a month ago (March 8) as the market's technical set-up was far away. Returns seem unpredictable over time, trading (cryptocurrency) is about risk reward and knowing when to bet big/small, and the past thirty days have truly been a time for small bets. But that will change soon."

Thielen pointed out: "Bitcoin traded in a symmetrical triangle pattern last month, and according to some historical analysis, 75% of triangle patterns will see a (bull market) continuation pattern and higher prices."

Thielen said stablecoin trading volumes can be a better predictor of future conditions, rather than just focusing on ETF flows or futures data.

He said: "In the past 30 days, we have seen ETFs record net inflows of approximately US$5 billion, and what is more noteworthy is that Tether has a net inflow Of $6.9 billion, Circle minted approximately $3 billion, for a total of $10 billion in new money coming in through stablecoins. While Bitcoin ETF flows have attracted media attention, as opposed to ETFs, stablecoin minting volumes are two times, and may only go long. We recommend paying less attention to Bitcoin ETF flows. Stablecoin issuers are objects to watch and will drive this market higher."

Thielen concluded: "Although we express Concerns about weak ETF flows have been lifted, but the baton has been passed to stablecoins. Tether records a seven-day mint signal of $2.4 billion, one of the highest since the start of this bull run, and fiat is accelerating into crypto In the field, with the symmetrical triangle breakout imminent, we hope to be bullish."

Thielen's analysis shows that based on the current formation, the triangle line pattern "met" on April 18. If it is a bullish breakout, Bitcoin may With the price climbing above $80,000 in the coming weeks, buying at 69,280 with a stop at 65,000 seems "appropriate".

Many cryptocurrency traders expect the Bitcoin halving event to be a pivotal moment in 2024, with a significant impact on the cryptocurrency market. However, analysts at Steno Research expect this to be a "buy the rumor, sell the news" affair. Steno Research predicts that the value of BTC will surge ahead of the halving event. However, within the first 90 days after the halving, its value may “fall below the halving price.”

With only 11 days left until Bitcoin’s halving, sentiment in the crypto ecosystem remains in “extreme greed” territory, according to data provided by Alternative. The overall cryptocurrency market capitalization is currently $2.69 trillion, with Bitcoin’s dominance rate at 52.4%.

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