Over $1 Billion In Stablecoins Are Sidelined Waiting To Push Bitcoin To $100K

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin is trading only a couple thousand dollars below $50,000, but according to one crypto analyst, there’s over $1 billion in stablecoins waiting on the sidelines to push the leading cryptocurrency by market cap to a price of $100,000 per coin, within the next thirty to sixty days.

Here’s why all this capital sitting on the sides could soon be used to drive prices even higher.

Analyst: Bitcoin Could Reach $100,000 Within 30 to 60 Days

Bitcoin has been an unstoppable uptrend since Black Thursday, almost a year ago to the date.

Since last March when the pandemic struck, the cryptocurrency has blossomed into a star within the finance space, providing returns wildly beyond expectations during a time when profits are slim and money is being debased at a haste.

A flood of institutional capital has pushed the price of Bitcoin during the one year from under $4,000 to $48,000, but within two months, that price could double, according to crypto trader Joseph Canfield. Canfield claims the catalyst for such a massively bullish move in such a short amount of time, is some $1 billion in sidelined stablecoins.

Could the $1 billion stablecoins drive Bitcoin to this incredible target within two months? | Source: BTCUSD on TradingView.com

How Stablecoins Have Been Shown To Increase Crypto Prices

Stablecoins such as Tether, USD Coin, Paxos, and many others, are tied 1-to-1 to the dollar, hence the “stable” categorization. As the supply of stablecoins rises, so do the prices of Bitcoin, Ethereum, and the rest of the altcoin market.

The correlation between Tethers being minted and Bitcoin price increase have been documented for years, but they have thus far not produced such results – until now.

Stablecoins have been used recently to place large orders for BTC on Coinbase Pro. Analysts say its like “rocket fuel” for the first ever cryptocurrency during an uptrend.

During recent days, stablecoin activity spiked before the news of Telsa’s Bitcoin buy made rounds. The theory is that the uptick in activity was spot BTC buying on the company’s behalf.

Tesla bought $1.5 billion worth of Bitcoin to add to company reserves and diversify their cash holdings, and it caused the largest daily green candle on record to follow. But since then, resistance has kept the cryptocurrency from clearing $50,000.

Another $1 billion in sidelined stablecoins, could prompt the break of $50,000, which would be yet another major psychological hurdle now in the rear view.

If this can happen, Canfield’s theory that Bitcoin could run to $100,000 within two months, isn’t at all that far fetched. And if it takes only two months to reach $100,000 from here, how high does this cycle go?

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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