Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Buyers Gear Up as More Stablecoins Flood the Exchanges

Bitcoin Buyers Gear Up as More Stablecoins Flood the Exchanges

BeInCryptoBeInCrypto2024/12/02 15:30
By:Abiodun Oladokun

Bitcoin may soon rally toward $100,000 as stablecoins flood exchanges, reducing selling pressure and signaling growing demand.

Bitcoin (BTC) has been trading within a narrow range over the past week, struggling to break above the $100,000 mark. The leading coin’s price has faced resistance at $98,804 and has found support at $94,603.

However, a decline in a critical on-chain metric suggests that the coin may be poised for a significant upward trend in the near term. 

Stablecoin Power and Holder Confidence Boost Bitcoin Outlook

BeInCrypto’s assessment of BTC’s on-chain performance has revealed a steady fall in its Exchange Stablecoins Ratio. Per CryptoQuant’s data, this stands at 0.000060 as of this writing, its lowest level since the beginning of the year.

The Exchange Stablecoins Ratio measures the amount of stablecoins held on exchanges relative to the amount of Bitcoin. A lower ratio indicates more buying power in the market, as there are more stablecoins for purchasing Bitcoin on exchanges. 

When this ratio dips, it often signals a higher demand for Bitcoin. As more investors seek to acquire Bitcoin, the coin’s price is likely to rise. This could potentially push it back toward the $100,000 psychological mark, which it has struggled to breach.

Bitcoin Buyers Gear Up as More Stablecoins Flood the Exchanges image 0BTC Exchange Stablecoins Ratio. Source: CryptoQuant

Further, the growing trend of short-term Bitcoin holders adopting a “HODL” strategy could fuel a rally toward the $100,000 mark. According to CryptoQuant, this group — typically those holding BTC for less than a month — has extended their holding period by 36% over the past month. 

Longer holding periods reduce selling pressure, create scarcity in the market, and often signal confidence in the coin’s price growth. This can contribute to upward momentum for Bitcoin in the near term.

Bitcoin Buyers Gear Up as More Stablecoins Flood the Exchanges image 1Bitcoin Address By Time Held. Source: IntoTheBlock

BTC Price Prediction: What to Expect?

BTC is currently trading at $96,882, just below its all-time high of $99,860, which remains a strong resistance level. If short-term holders continue their “HODL” strategy and new demand arises — supported by the influx of stablecoins on exchanges — Bitcoin could surpass this barrier and move toward the $100,000 milestone.

Bitcoin Buyers Gear Up as More Stablecoins Flood the Exchanges image 2Bitcoin Price Analysis. Source: TradingView

However, if selling pressure intensifies, BTC’s price might consolidate within its current range or dip further to $88,986 before attempting another upward move.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!