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Today’s Cryptocurrency Headline
Total stablecoin supply increased shortly after the recent bitcoin rally began in earnest, according to The Block’s Data Dashboard.On Oct. 16, a false report that a spot bitcoin ETF had been approved ignited what has become a sustained multi-week rally for the world’s largest digital asset by market capitalization. Around the same date, data from The Block showed an increase in stablecoin supply, with most of the newly minted coins swelling into USDT.According to analysts at Glassnode, the increased total stablecoin supply is a signal for net capital inflow into the entire cryptocurrency sector. “Stablecoins represent investor demand for speculative capital,” a Glassnode report sent to The Block stated.Glassnode analysts stated how “we are now seeing a break above Glassnode’s Altseason Indicator, which shows all three assets, bitcoin, ether, and combined stabelcoins posting upticks.””Bitcoin is leading for net inflows, and stablecoins have had net outflows until very recently,” the Glassnode analysts said. Until recently total stablecoin supply has declined throughout the year-to-date, following its peak in May 2022, just before the TerraUSD collapse.”Now, all three assets, bitcoin, ether, and total stablecoins are now in positive territory, all increasing,” the Glassnode analysts added.
BingX’s Bitcoin Chart
This week Bitcoin price came within a hair of the $36,000 mark, before abruptly reversing course and correcting to $34,250. After a near 30% run over the past month, it is natural for the price to cool off as some traders take profit and market participants evaluate whether or not the catalysts for the rally remain valid. Despite the intraday price action, which saw a 4.67% drawdown, a number of analysts remain bullish on Bitcoin, and some expect another “gamma squeeze” if BTC price manages to push through the $36,300 level.Permabulls like MicroStrategy CEO Michael Saylor appear unbothered by the whipsaw price action, and on Nov.1, MicroStrategy announced the October purchase of 155 BTC for $5.3 million.The short-term uncertainty in the crypto market does not appear to have changed institutional investors’ long-term outlook. Despite a hostile U.S. regulatory environment, two large institutions, BlackRock and Invesco Galaxy ETF tickers are currently listed on the Depository Trust and Clearing Corporation’s (DTCC) website.Despite the urgency of major financial firms, the SEC seems poised to continue to delay decisions on approving Bitcoin ETFs until 2024. Even with the current Bitcoin price downturn, institutional crypto funds saw their largest weekly inflow in more than a year on Oct. 30.The support level is at $34,300 and the resistance level is at $35,100.
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