Bitcoin (BTC) set a new all-time high today as it rallied to cross the $98000 mark amidst a surge in stablecoin inflows.
Stablecoin Inflows across crypto exchanges touched a new monthly high showcasing the growing investors' interest in the crypto market. This has resulted in speculations if it will trigger a BTC price rally to the $100,000 milestone as we near November-end.
This month stablecoin inflows across crypto exchanges crossed $9.7 billion.
According to the Research Head at Onchain Foundation, Leon Waidmann this means an uptick in investors' demand.
This stablecoin inflows can be the necessary element that can put Bitcoin on track to its $100,000 before November-end. This month always has been the most bullish month for Bitcoin returns. Hence analysts are betting on it to happen over this week.
. Stablecoins act as the investor on-ramp from fiat to cryptocurrencies. Hence a spike in stablecoin inflows indicates a rise in crypto investors' appetite as well as a potential surge in buying pressure.
When Bitcoin hit a 5-month low of $49,500 in August 5-9, Tether released $1.3 billion worth of USDT (USDT $1.00). This push by Tether resulted in BTC rallying $60,200 by Aug. 9, regaining 21%.
Now analysts are expecting a similar surge towards the $100,000 mark courtesy fueled by the stablecoin inflow.
Bitget Research’s chief analyst Ryan Lee echoed the same sentiments when he said “If history repeats itself and Bitcoin prices grow as projected, a 14.7% from the current price level will push the coin well above the $100,000 target for the month.”
Additionally, the post-halving cycle trend is also depicting a positive momentum for Bitcoin.
All this is happening while spot Bitcoin ETFs have experienced an increase in inflows. US Bitcoin ETFs gathered more than $773 million in positive inflows on Wednesday, November 20 which was the third consecutive green day.
This marked the sixth consecutive week when spot Bitcoin ETFs registered a net positive inflow as it recorded more than $1.67 billion in the November 11–15 week.
At the time of writing on November 21, Bitcoin was trading at $97339, up 3.40% in the last 24 hours with a 25.70% and a 3.24% gain in trading volume and market capitalization which were at $98.93 billion and $1.92 trillion respectively.