Can BTC soon climb to the $109,000 level thanks to stablecoin liquidity? Maybe yes!
An increase in stablecoin market cap often signals more money entering the crypto space, indicating bullish sentiment as investors prepare to deploy capital. This increased liquidity can lead to smoother trading and attract more participants, potentially driving up Bitcoin's price.
The chart clearly illustrates this relationship:
This correlation can serve as a leading indicator for Bitcoin price movements. During downturns, investors might sell Bitcoin for stablecoins, but as sentiment shifts, this "dry powder" can quickly flow back, driving Bitcoin's price up.
Adding to that, the long-term correlation coefficient between stablecoin liquidity market cap (USDT+USDC+DAI+USDE) and Bitcoin is 90%. So, yes, there's a strong long term correlation and usually BTC and stablecoin liquidity converge.
According to my views on the stablecoin liquidity, the Bitcoin price should target the $109k level.
Last time I made this analysis, Bitcoin jumped from $58k to my price target of
73K in the span of 2 months.
Let me know your thoughts.
An increase in stablecoin market cap often signals more money entering the crypto space, indicating bullish sentiment as investors prepare to deploy capital. This increased liquidity can lead to smoother trading and attract more participants, potentially driving up Bitcoin's price.
The chart clearly illustrates this relationship:
- Purple line (
USDT + 
USDC + 
DAI + 
USDEE market cap) shows steady growth - Bitcoin candle chart (
BTCUSD price) follows with more volatile increases - Blue line at the bottom: BTC and stablecoin correlation coefficient of 0.9 😊
This correlation can serve as a leading indicator for Bitcoin price movements. During downturns, investors might sell Bitcoin for stablecoins, but as sentiment shifts, this "dry powder" can quickly flow back, driving Bitcoin's price up.
Adding to that, the long-term correlation coefficient between stablecoin liquidity market cap (USDT+USDC+DAI+USDE) and Bitcoin is 90%. So, yes, there's a strong long term correlation and usually BTC and stablecoin liquidity converge.
According to my views on the stablecoin liquidity, the Bitcoin price should target the $109k level.
Last time I made this analysis, Bitcoin jumped from $58k to my price target of
73K in the span of 2 months. Let me know your thoughts.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.