Bitcoin is trading just a few thousand dollars below $ 50,000. According to a crypto analyst, there are more than $ 1 billion of stablecoins waiting on the sidelines to push the leading cryptocurrency to $ 100,000. These cryptocurrencies are likely to act in the next thirty to sixty days.
The claim that “pending stablecoins could double the price of Bitcoin”
It is stated that all this capital may soon be used to further raise prices.
Bitcoin has had an unstoppable uptrend since Black Thursday, almost a year ago.
Since the outbreak began last March, the cryptocurrency has turned into a star in finance and has made returns beyond expectations at a time of weak profits and currency depreciation.
According to crypto trader Joseph Canfield, the flood of institutional capital has increased the price of Bitcoin from under $ 4,000 to $ 48,000 over the course of a year, but within two months this price could double. Canfield claims that the catalyst for such an enormous bullish move in such a short time was in stablecoins worth $ 1 billion.
Fixed currencies such as Tether, USD Coin, Paxos, and others are tied 1 to 1 per dollar, so they fall into the “fixed” category. As the supply of Stabilcoin increases, so does the prices of Bitcoin, Ethereum and the rest of the altcoin market.
The correlation between the printing of Tether and the Bitcoin price increase has been known theoretically for years, but so far they have not been very good at producing such results.
Stablecoins have recently been used to place large BTC orders on Coinbase Pro. Analysts say it sounds like “rocket fuel” for the first cryptocurrency during the uptrend.
The way that the #Bitcoin chart is set up, it looks like it wants to go to $100,000 within the next 30-60 days.
Excited to see the true power once it breaks up from $50,000.
Over a billion dollars in stable coins is waiting to fuel this rally to the upside.
I'm here for it.
— Jacob Canfield (@JacobCanfield) February 12, 2021
In recent days, stablecoin activity has skyrocketed before Telsa’s Bitcoin buying news. The theory is that the increase in activity is the purchase of BTC on behalf of the company.
Tesla purchased $ 1.5 billion worth of Bitcoin to add to the company’s reserves and diversify its cash assets, leading to the biggest daily green candle on record. However, resistance has since prevented the cryptocurrency from exceeding $ 50,000.
Another $ 1 billion stablecoin could cause $ 50,000 to break, which is a major psychological hurdle right now.
Canfield’s theory that Bitcoin could rise to $ 100,000 in two months if the anticipated uptrend could be achieved doesn’t seem all that difficult.