Bitcoin (BTC) set a new record high today as it surged past $98,000 amid a surge in stablecoin inflows.
Steady inflows into cryptocurrency exchanges have hit a new monthly high, indicating growing investor interest in the cryptocurrency market. This has led to speculations as to whether it will trigger a BTC rally to $100,000 as we approach the end of November.
This month, stablecoin inflows into cryptocurrency exchanges exceeded $9.7 billion.
According to Head of Research at Onchain Foundation, Leon Waidmann, this means that investor demand will increase.
This steady inflow could be the catalyst that puts Bitcoin on track to hit $100,000 before the end of November. This month has always been the strongest month for Bitcoin returns, so analysts are betting that it will happen this week.
. Stablecoins act as a bridge between investors and fiat currencies. Therefore, the surge in stablecoin flows indicates increased demand from crypto investors as well as the possibility of increased buying pressure.
When Bitcoin hit a five-month low of $49,500 on August 5-9, Tether issued $1.3 billion worth of USDT ($1.00 USDT). This move by Tether sent BTC soaring to $60,200 on August 9, recouping 21%.
Now, analysts are expecting a similar rally towards the $100,000 mark thanks to stablecoin inflows.
Bitget Research chief analyst Ryan Lee also agreed with this view, saying that “If history repeats itself and Bitcoin price rises as expected, a 14.7% increase from current price would push the coin well above its target of $100,000 within the month.”
Additionally, the post-halving cycle trend is also showing positive momentum for Bitcoin.
All of this comes as spot Bitcoin ETFs have seen increased inflows. U.S. Bitcoin ETFs attracted more than $773 million in positive inflows on Wednesday, November 20, marking the third consecutive green day.
This is the sixth consecutive week that spot Bitcoin ETFs have recorded positive inflows, reaching over $1.67 billion during the week of November 11-15.
At the time of writing on November 21, Bitcoin was trading at $97,339, up 3.40% over the past 24 hours with 25.70% and 3.24% increases in trading volume and market capitalization of $98.93 billion and $1.92 trillion, respectively.