Bitcoin To Hit $100,000? Rapid Stablecoin Exchange Inflows Continue

On-chain data reveals exchanges have received stablecoin deposits recently, which might boost Bitcoin and other digital assets.

Recent stablecoin exchange netflow is positive.
An analyst noted in a CryptoQuant Quicktake that stablecoins are entering exchanges. The “Exchange Netflow,” which tracks the net amount of an asset entering or leaving centralized platform wallets, is the relevant on-chain metric.

This measure is good when investors net deposit coins to exchanges. A pattern like this shows holders want to sell.

Negative indicators indicate investors prefer to keep onto the cryptocurrency, as they self-custody their tokens. These movements might affect the industry and asset differently depending on the currency seeing outflows/inflows.

A positive Netflow indicates that holders are selling, which can hurt Bitcoin prices. BTC is one of the sector's primary capital transition points, thus selling it can hurt other coins.

Stablecoin deposits also indicate traders desire to sell them, but given their price stays around $1, selling would not be bearish.

Stablecoins, like Bitcoin, attract investments to the sector. When investors wish to avoid asset volatility, they buy stables.

Holders generally shift fiat-tied tokens into exchanges when they're ready to trade volatile coins. This automatically boosts buying pressure for the new asset. Positive stablecoin Exchange Netflows are favorable for Bitcoin.

The quant contributed this graphic showing stablecoin Exchange Netflow trends:

The graph shows that stablecoin exchange netflow has been positive for weeks. With these inflows, Bitcoin has been smashing records, therefore stablecoin deposits may be fueling the asset.

The indicator's value has been rising, suggesting investors are still buying BTC. The latest stablecoin inflows may extend the rally and enable the asset reach $100,000 if the earlier trend continues.

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