Stablecoin issuance could be the key to bitcoin's next rally

[NikeFit_7777]

Stablecoin issuance could be the key to the next bitcoin rally, analysts at 10x Research believe. 

According to their observations, over the past week, key issuers (Tether and Circle) have issued about $2.8 billion worth of stablecoins, indicating that new capital is flowing into the market.

10x Research believes bitcoin "looks promising" if it can hold above $60,000, but without a stronger influx of stablecoins, that growth could lose momentum. 

[Wiseman]

Stablecoin issuance could be the key to the next bitcoin rally, analysts at 10x Research believe. 

According to their observations, over the past week, key issuers (Tether and Circle) have issued about $2.8 billion worth of stablecoins, indicating that new capital is flowing into the market.

10x Research believes bitcoin "looks promising" if it can hold above $60,000, but without a stronger influx of stablecoins, that growth could lose momentum. 

if a lot of such stable money is required, then a lot of users come to the market who in any case will buy not only stablecoins but also other cryptocurrencies, because of which I will still grow.

[ABCbits]

Do you mind sharing link to the analysis? I don't see direct correlation between total issued stablecoin and Bitcoin price, especially when Tether no longer support Bitcoin network.

Blockchain ready

Tether tokens exist as digital tokens built on various blockchains including Algorand, Avalanche, Celo, Cosmos, Ethereum, EOS, Liquid Network, Near, Polkadot, Solana, Tezos, Ton, and Tron. Therefore, issuance of Tether tokens is viable on various blockchains with varying capabilities depending on the transport protocol used.

[hugeblack]

The only positive effect of stablecoins may be that they may buy Bitcoin as part of the assets that support the price peg but since they take a part of Bitcoin's share they are bad for a bull market and good for a bear market.

[MrSpasybo]

Stablecoin issuance could be the key to the next bitcoin rally, analysts at 10x Research believe. 

According to their observations, over the past week, key issuers (Tether and Circle) have issued about $2.8 billion worth of stablecoins, indicating that new capital is flowing into the market.

I don't think that stablecoin issuers will be the key to driving BTC price increase and the growth of the crypto market. Tether & Circle are just gateways for money to flow into the market more easily, and they also solidify liquidity as many trading pairs with stablecoins are listed.

Therefore, what matters is still inflows: the more money flows into crypto, the more Tether & Circle mint stablecoins and we can see price increases happening in every trend. I don't consider the possibility of Tether minting additional USDT from thin air and then using USDT to buy BTC on the market, and although Tether holds ~75K BTC = $4.3B, that's just a small number compared to MicroStrategy or BTC Spot ETFs funds.

[Manna]

Stablecoin issuance could be the key to the next bitcoin rally, analysts at 10x Research believe. 

According to their observations, over the past week, key issuers (Tether and Circle) have issued about $2.8 billion worth of stablecoins, indicating that new capital is flowing into the market.

I don't think that stablecoin issuers will be the key to driving BTC price increase and the growth of the crypto market. Tether & Circle are just gateways for money to flow into the market more easily, and they also solidify liquidity as many trading pairs with stablecoins are listed.

Therefore, what matters is still inflows: the more money flows into crypto, the more Tether & Circle mint stablecoins and we can see price increases happening in every trend. I don't consider the possibility of Tether minting additional USDT from thin air and then using USDT to buy BTC on the market, and although Tether holds ~75K BTC = $4.3B, that's just a small number compared to MicroStrategy or BTC Spot ETFs funds.

Your analysis is correct.  The main role of stablecoins is to ensure money flow and liquidity in the market, which helps to facilitate trading pairs and maintain crypto-currency price stability.  While transactions and activities associated with stablecoins can increase market liquidity, they are not directly the main driver of long-term growth in the value of Bitcoin or other cryptocurrencies. The key to Bitcoin's value growth generally depends on greater liquidity, investment institutions, and investor confidence in Bitcoin.  Institutions issuing stablecoins such as Tether may have relatively small holdings of bitcoin, especially when compared to large holdings such as MicroStrategy or BTC Spot ETFs. Thus, stablecoins are mainly influenced by general market flows, larger investments and trading volume to drive bitcoin's price increase.  It's good to see.

[Aanuoluwatofunmi]

IN recent times, everything is pointing at the tether network because of the sudden peak which they have achieved and this i hope will not cause some to making the mistake whereby they may experience lose, i don't want to believe that the issuance of stablecoin could be the major spike to the bitcoin market price to rally, even though there could be some coincidence sometimes.

[B.Trader]

I read your post very well and understood from here that according to 10x Research analysts, the issuance of stablecoins can play an important role for the next bitcoin rally.  Their observations showed that Tether and Circle issued roughly $2.8 billion worth of stablecoins in recent weeks, indicating that new capital is flowing into the market.  If this is true then Tether will have a lot of impact on the market.

[Vision pro]

IN recent times, everything is pointing at the tether network because of the sudden peak which they have achieved and this i hope will not cause some to making the mistake whereby they may experience lose, i don't want to believe that the issuance of stablecoin could be the major spike to the bitcoin market price to rally, even though there could be some coincidence sometimes.

There may be a correlation between the issuance of stablecoins and the increase in the price of Bitcoin, but it is difficult to say for sure that the issuance of stablecoins directly caused the large increase in the price of Bitcoin.  Issuance of stablecoins may indicate an inflow of new capital, which may have a positive impact on the Bitcoin market.  However, it is not always a direct cause, sometimes other market factors can influence the market and happen miraculously, so it is possible to say that the issue of Struble Coins increases the price of Bitcoins.

[hugeblack]

I don't think that stablecoin issuers will be the key to driving BTC price increase and the growth of the crypto market. Tether & Circle are just gateways for money to flow into the market more easily, and they also solidify liquidity as many trading pairs with stablecoins are listed.

their damage would be very great if something bad happened to them. I don't think it would be possible to trust stablecoins if something bad happened to Tether and Circle, so they are a Trojan horse. They brought value to Bitcoin, and their collapse would cause great damage to cryptocurrencies.

[NikeFit_7777]

A new record for Stablecoins!

The market capitalization of stablecoins reached $165 billion for the first time. This figure may indicate that BTC and crypto in general are preparing for a new stage of growth.

It's simple, the more stablecoins there are, the more potential for future crypto purchases. It looks like the fuel for a new rally is at the start.

P.S. What do you think is the reason for such an increase in the number of stablecoins? 

[hugeblack]

It's simple, the more stablecoins there are, the more potential for future crypto purchases. It looks like the fuel for a new rally is at the start.

P.S. What do you think is the reason for such an increase in the number of stablecoins? 

This may or may not be the reason, at the same time there are expectations of an imminent reduction in interest rates which means signs that more liquidity will be available and more money will enter the market. So far we have not seen the positive impact of stablecoins but we have seen their negative impact in what happened with LUNA/UST.