Bitcoin: The Stablecoins Boom Could Revive the Queen!

The recent volatility has battered the crypto market, with Bitcoin struggling to regain its former glory. Although a slow recovery of digital assets is underway, the much-anticipated bull run still seems distant. However, a new prediction could change the game. Indeed, according to some analyses, the increase in stablecoin issuance could become a catalyst for Bitcoin’s next surge.

The issuance of stablecoins: the trigger for a new wave for Bitcoin?

In recent days, stablecoins are on the rise, having exploded by $1.533 billion in just 3 days. No less than $2.8 billion were injected by Tether and Circle, with a clear hope of seeing the crypto market brighten up.

According to Markus Thielen, chief researcher at 10x Research, this trend of massive issuance could be the needed boost to propel Bitcoin to new heights.

• Tether: more than a billion dollars of USDT issued in just one week.
• Circle: nearly a 4.5% increase in capitalization for its USD Coin (USDC).

However, Thielen specifies that this capital injection must be sustainable to maintain bullish momentum. He warns against false hopes: without a regular influx of new funds via stablecoins, Bitcoin’s recovery could quickly stall.

In other words, if institutional investors continue to support this trend, then yes, a revival could be on the horizon. But if this wave dries up, it will still take some time before Bitcoin soars again.

Crypto and external factors: a precarious balance

It is not enough to inject billions to see Bitcoin explode; other elements come into play. The macroeconomic context, the decisions of the US Federal Reserve, and even electoral polls influence this turbulent market.

Thielen points out that the crypto market, although influenced by stablecoins, remains sensitive to external factors. The example of recent fluctuations is proof: despite the enthusiasm around stablecoins, Bitcoin has not yet managed to break through the resistance of $60,000 to $61,000.

Without the support of a more favorable context, including more contained inflation in the United States or more accommodative monetary decisions, the gains will remain limited.

In short, even if stablecoins play a key role, they are not the magic wand that will turn every investment into digital gold. The market remains watchful, and savvy traders know it well: everything is a matter of timing and patience in this fascinating yet unpredictable world of crypto.

Moreover, since April, crypto analysts have noted that the bull run is taking time. They estimate that it will take about 160 days after the Bitcoin halving for this to happen.