- Bitcoin surged 10% this week, driven by $2.5 billion in stablecoin inflows and increased institutional investments.
- Tether minted over $1 billion USDT in 24 hours, boosting Bitcoin’s price past $61,000.
- Goldman Sachs invested $418 million in Bitcoin ETFs, signaling rising institutional demand.
A significant rebound has been seen this week for both the cryptocurrency market as a whole and for Bitcoin, with the price of the latter rising above $61,000. Stablecoin inflows have been very strong over the last week, which is largely responsible for this 3% increase.
A recent spike in the issuance of stablecoins, especially USDT and USDC, suggests that new capital may be entering the crypto market. Consequently, traders of Bitcoin are keeping a close eye on these developments in anticipation of a potential bullish effect on the market.
Stablecoin Issuance Boosts Market Confidence
Tether and Circle have significantly increased the issuance of USDT and USDC stablecoins. This pattern raises the possibility that institutional investors are getting ready to add more funds to the cryptocurrency market.
Stablecoin inflows of $2.5 billion over the last week may have played a significant role in the recent short covering of Bitcoin. Furthermore, the recovery of the larger cryptocurrency market has paralleled that of Bitcoin, with Ethereum dominating the altcoin space.
Institutional Demand for Bitcoin Grows
Increase in inflows into spot Bitcoin exchange-traded funds (ETFs) is more proof of the growing interest in Bitcoin among institutional investors. Notably, in the second quarter, Goldman Sachs revealed a $418 million investment in Bitcoin ETF products. This action demonstrates how institutions are becoming more interested in Bitcoin as an asset class.
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Money flows had stopped since April 2024, which caused a correction in the price of Bitcoin. Nonetheless, the market has benefited from the recovery in money flows brought about by growing USDT and USDC supply.
Signals for Positive Momentum
Tether has made over $1 billion in USDT in the last day, which bolsters the positive momentum in the cryptocurrency market. After that, these stablecoins were moved to centralized exchanges like Kraken, Coinbase, and Binance.
Bitcoin’s weekly gain has been fueled by the inflow of liquidity, which has strengthened the recovery of the market as a whole. The macroeconomic events that take place this week will be very important in determining how the cryptocurrency market develops in the future.
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