Bitcoin is only trading a few thousand dollars under $ 50,000, but over $ 1 billion in stable coins are on the verge of being the leading cryptocurrency by market cap within the next thirty to sixty, priced at $ 100,000 within the next thirty to sixty, according to a crypto analyst days to bring per coin.
Therefore, all of this capital that sits on the pages could soon be used to raise prices even further.
Analyst: Bitcoin could hit $ 100,000 in 30 to 60 days
Bitcoin has been an unstoppable upward trend since Black Thursday almost a year ago.
Since the outbreak of the pandemic in March last year, the cryptocurrency has become a star in the financial arena, generating returns well above expectations at a time when profits are low and money is being devalued in a hurry.
Related reading | Stallcoins act as “rocket fuel” and propel Bitcoin to another ATH
A flood of institutional capital has raised the price of Bitcoin from under $ 4,000 to $ 48,000 in one year, but that price could double in two months, according to crypto trader Joseph Canfield. Canfield claims the trigger for such a massive upward trend in such a short period of time was about $ 1 billion in minor coins.
Could the stable $ 1 billion worth of Bitcoin within two months lead to this incredible goal? | Source: BTCUSD on TradingView.com
How stable coins were shown to increase crypto prices
Stable coins such as Tether, USD Coin, Paxos and many others are linked 1: 1 to the dollar, hence the “stable” categorization. As the supply of stable coins increases, so do the prices of Bitcoin, Ethereum and the rest of the altcoin market.
The correlation between the minting of Tethers and the rise in Bitcoin price has been documented for years, but has not yet produced such results.
Stablecoins were recently used to place large orders for BTC on Coinbase Pro. Analysts say it is like “rocket fuel” for the first cryptocurrency during an uptrend.
Stablecoin activity increased in the past few days before news of Telsa’s Bitcoin purchase made the rounds. The theory is that the surge in activity was the purchase of spot BTC on behalf of the company.
Tesla bought $ 1.5 billion worth of Bitcoin to replenish the company’s reserves and diversify its cash holdings, and it was followed by the largest daily green candle ever recorded. Since then, the resistance has kept the cryptocurrency from releasing $ 50,000.
Related reading | Altcoins are bleeding after Tesla Bitcoin Buy, BTC Dominance indicates deception
Another $ 1 billion in minor coins could trigger the break of $ 50,000, which would be another major psychological hurdle in the back view.
If that can happen, Canfield’s theory that Bitcoin could jump to $ 100,000 in two months isn’t all that far-fetched. And if it only takes two months to get to $ 100,000 from here, what’s that cycle?
Featured image from deposit photos, charts from TradingView.com
