Crypto expert Dan from CryptoQuant has shared insights indicating that Bitcoin‘s ability to hold above the $70,000 mark may be short-lived. Dan’s analysis comes against a backdrop of increased inflows into the cryptocurrency market, benefiting both Bitcoin and various altcoins. He asserts that the rising tide of investment is not confined to Bitcoin but is also lifting other digital assets.
Stablecoin Supply Signals Investor Confidence
New data from CryptoQuant shows a surge in stablecoin demand, similar to levels seen in 2021. This surge follows Tether‘s release of $2 billion in USDT into the market, a significant move that came just five days after issuing $1 billion in stablecoins. Dan interprets this influx as a sign of accelerated buying interest in Bitcoin and other cryptocurrencies, reflecting a bullish outlook for the market.
He also points out the vigorous attempts by Bitcoin proponents to breach and sustain the $70,000 threshold, noting Bitcoin’s recent spike to $72,000 as a testament to their persistence.
Optimism as Bitcoin Chases New Highs
With Bitcoin’s continued success in overcoming bearish resistance, Dan suggests that a new standard above the current peak is likely in the offing. CryptoQuant’s CEO Ki Young Ju concurs, highlighting sustained investments in spot Bitcoin ETFs as a deterrent to bearish trends and suggesting a potential consolidation of Bitcoin’s price above $70,000.
This analysis is further underscored by Bitcoin’s volatile price movements, with a record peak of $73,000 followed by a swift pullback to around $70,800. At the time of the report, Bitcoin is trading close to $72,000, with the latest price being $71,918, indicating a market teetering on the edge of setting new records.