According to PANews, Markus Thielen, founder of 10x Research, emphasized in his latest report the importance of monitoring and analyzing cryptocurrency fund flows to evaluate the market environment for Bitcoin and other cryptocurrencies. These market conditions can act as either tailwinds or headwinds. Traders often find themselves unprepared for price drops, overlooking the critical signals provided by these fund flows. Conversely, sustained growth in fund flows can drive prices up, but many miss these indicators as well.
Given that broad money flows essentially stagnated in early April 2024, subsequent price adjustments were expected. However, as the market approached its bottom, the recovery of certain fund flows helped boost prices. The key factor is monitoring the sustainability of these fund flows, as upward momentum tends to weaken without continuous support.
Last night, Tether minted $1 billion in USDT, which appears to be more of a stockpiling effort rather than an immediate issuance. This aligns with the detailed descriptions in 10x Research's book, 'Cryptocurrency Giants: How Trillions Are Created and Disappear in the Cryptocurrency Market.' However, earlier last week, Tether and Circle collectively issued nearly $2.8 billion, indicating that some institutional investors are injecting new funds into the cryptocurrency market. If this issuance trend continues, rather than just minting, Bitcoin could see further price increases.