Key Points
- Bitcoin’s price has hit an all-time high of over $97,500, driven by $9.7 billion stablecoin inflows in the past month.
- Stablecoin inflows indicate growing investor interest and suggest that Bitcoin could soon exceed the $100,000 milestone.
Bitcoin’s price has surged by 5% in the last 24 hours, reaching a new all-time high of over $97,500. This increase is largely attributed to the record $9.7 billion stablecoin inflows into the market over the past month, indicating an increase in investor interest.
Within the last month, stablecoin inflows have nearly reached $10 billion. Leon Waidmann, The Onchain Foundation’s head of research, interprets this as a clear signal of an uptick in investor demand. He commented, “Stablecoin inflows to exchanges hit $9.7B in 30 days! The LARGEST monthly inflow EVER. Stablecoin liquidity is back. Speculative demand continues to explode!”
Stablecoins and Bitcoin’s Price
The rise in stablecoin inflows to crypto exchanges may indicate upcoming buying pressure and an increase in investor appetite. Stablecoins are primarily used as a gateway for converting fiat into crypto.
These considerable stablecoin inflows suggest that the price of Bitcoin could soon break the $100,000 milestone. Crypto market analyst Ali Martinez has suggested that Bitcoin could reach this milestone imminently as it breaks out of the bull flag in the hourly time frame.
Forecasts for Bitcoin
Crypto market analysts are bullish about Bitcoin’s prospects, suggesting that the rally could continue. Ali Martinez has drawn parallels between Bitcoin’s current market behavior and its performance in December 2020, noting that the Relative Strength Index (RSI) is nearly identical to that period. If history repeats itself, Martinez predicts Bitcoin could reach $108,000, then drop to $99,000 before surging to $135,000.
Other market analysts, like Peter Brandt, have also pointed out the Bitcoin price action after the US election results on November 5. In the last 15 days, Bitcoin has seen a swift rally from $65,000 levels to its current position. After consolidating around $90,000 for a while, Bitcoin has once again broken from the flag, potentially leading to a rally to $125,000 and above.
On another note, Spot Bitcoin exchange-traded funds (ETFs) continue to fuel Bitcoin’s price rally. On November 20, the US Bitcoin ETFs saw over $773 million in net positive inflows, led by BlackRock’s IBIT alone seeing $662 million in inflows. The launch of options for BlackRock’s IBIT the day before triggered significant trading volumes on the first day, indicating strong demand for the product.
During the trading week of November 11–15, the US Bitcoin ETFs experienced their sixth straight week of net inflows, accumulating more than $1.67 billion. CoinGlass data shows that Bitcoin futures open interest (OI) on the Chicago Mercantile Exchange (CME) reached a record high of 218,000 BTC ($21.3 billion), marking an increase of over 30% compared to levels before the Nov. 5 election, showing a significant bullish sentiment.
