Bitcoin will break through $100,000? Stable Coin exchange funds continue to flow in rapidly

As pointed out by an analyst in the article, stablecoins have been flowing into the exchange recently. The relevant on-chain indicator here is 'exchange net flow', which tracks the net amount of specific assets entering and exiting Wallets associated with centralized platforms. When the value of this indicator is positive, it means that investors are net depositing Tokens into the exchange. This trend indicates that holders are looking to trade off the asset.

On the other hand, a negative value for the indicator means that investors are more willing to hold Crypto Assets because they are keeping the Token themselves. The impact of these trends on the broader industry and the assets themselves may vary depending on the specific type of Tokens flowing in/out.

For volatile assets such as BTC, a positive net flow may be unfavorable to the price, as it means holders are seeking to sell. BTC is also a major conversion point for the entire industry capital, so selling BTC may also be a bad sign for other Tokens.

Stablecoin deposits also mean that traders want to sell them, but because their price is always stable at around $1, selling them does not have a 'bearish' impact.

Like BTC, Stable Coin is the gateway for capital to enter the industry. More specifically, investors will invest in Stable Coin when they want to avoid Fluctuation associated with other assets.

These holders typically eventually plan to invest in more volatile tokens, and once they are ready, they will transfer these tokens pegged to fiat currency to the exchange for trading. This naturally puts buying pressure on any assets they move to. Therefore, positive stablecoin exchange net flows are considered beneficial to bitcoin.

Figure 1 is a chart shared by a quantitative analyst, showing the recent trend of net flow of Stable Coin exchanges. From the chart, it can be seen that the net flow of Stable Coin exchanges has mostly been in positive territory in the past few weeks. In addition to these inflows, BTC has also been hitting new highs, so these Stable Coin deposits are likely to have been the fuel for this asset.

The value of this indicator has recently continued to show strength, so it seems that investors have not yet completed the accumulation of BTC. If the earlier trend continues, the latest Stable Coin inflows could extend the rally and potentially help the asset to ultimately break the dream target of 100,000 dollars.

BTC fell below the $94,000 level yesterday, but it seems that the currency has rebounded now, with its price at around $94,200.

(Data Source: Keshav Verma)