Bitcoin In recent days, spot Bitcoin ETFs have continued their volatile movements with the news of their approval and start of trading.
At this point, it rose above $48,000 last night. BTCthen fell again to the level of $ 45,000.
While BTC continues its harsh movements CryptoQuant analyst, He said there is a positive connection between the increase in stablecoin supply and the price of Bitcoin.
According to this, The increase in stablecoin supply increases Bitcoin market liquidity, creating a positive impact on the price.
The analyst noted that as the supply of stablecoins increases, investors tend to use the resulting additional liquidity to purchase Bitcoin, and said that this behavior of investors increases the price of BTC.
The analyst, who also added a chart supporting this connection, wrote:
“The increase in stablecoin supply has a positive impact on prices by increasing Bitcoin market liquidity.
Investors also tend to use this additional liquidity to purchase Bitcoin.
This behavior of investors increases the demand for Bitcoin and supports the upward trend of prices.
In fact, the increase in the total stablecoin supply reflects investor confidence and increases interest in Bitcoin.
Investors are entering the cryptocurrency markets through stablecoins and often pouring this capital into Bitcoin.
These trends of investors contribute to the rise of Bitcoin prices and strengthen the market dynamics.
In summary, the increasing supply of stablecoins supports the Bitcoin market and positively affects prices.”
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!