A surge in stablecoin inflows to cryptocurrency exchanges has ignited speculation that Bitcoin could reach the coveted $100,000 milestone before the end of November.
Stablecoin inflows to cryptocurrency trading platforms have recently skyrocketed to a new monthly high near the $10 billion mark, suggesting investors are allocating additional capital to the cryptocurrency space as prices rise.
According to data from Glassnode shared by Leon Waidmann, Head of the Onchain Foundation, stablecoin inflows to cryptocurrency exchanges hit $9.7 billion over the last 30 days, the “largest monthly inflow ever.”
Per the analyst, the figure shows that speculative demand “continues to explode.” Stablecoin inflows suggest investors are moving their funds to exchanges in a bid to buy cryptocurrencies.
The record stablecoin inflows come at a time in which the cryptocurrency market is experiencing a significant rally, with the flagship cryptocurrency Bitcoin now trading at a new all-time high above the $98,000 mark after rising more than 7.2% over the past week.
Ethereum’s Ether, the second-largest digital asset by market capitalization, rose 2.5% over the past week to now trade at around $3,300 per token. Other cryptocurrencies, including Solana, XRP, Cardano, TRON, and Avalanche have seen their prices rally over the past week.
As CryptoGlobe reported, Bitcoin’s largest holders, colloquially known as “whales,” haven’t seemingly taken advantage of the cryptocurrency’s massive price rise so far this year, and instead are still accumulating BTC at current price levels.
According to data from on-chain analysis firm IntoTheBlock, net outflows among the biggest Bitcoin wallets have remained exceptionally low throughout the year as these large holders keep on accumulating, in a move that “reflects a strong level of confidence in Bitcoin’s long-term potential.”
This unwavering confidence from the largest holders is a significant indicator of market sentiment. It comes after a week in which it was revealed cryptocurrency investment products saw a record $33.5 billion inflows so far this year after seeing more than $2.2 billion coming in over the past week.
Featured image via Unsplash.
