Cash Flow and Crypto
Accelerating cash flow is essential for a rally, and we have long seen this support the price with strong demand in the ETF channel. Moreover, the expectation that relaxation on the macroeconomic front will begin now paves the way for more optimism in risk markets, especially for BTC.
According to data compiled by CryptoQuant from US-based crypto exchange Coinbase, the largest USD Coin (USDC) stablecoin inflow was recently seen, with a total of $1.4 billion. Analysts believe this increase in US-based stalecoin deposits reflects increased participation in the crypto market.
The growth of stablecoin deposits paves the way for new rallies in Bitcoin and altcoins. On the other hand, demand in the ETF channel has been 8-20 times larger than daily issuance for a long time. This points to a process in which the supply shortage can be better understood, with the effect of block rewards that will decrease by half in April. Historically, the halving event has always triggered strong rallies in the BTC price.