Bitcoin News Today: Stock Markets Rally, But BTC Price Stays Behind Despite Stablecoin Growth
The post Bitcoin News Today: Stock Markets Rally, But BTC Price Stays Behind Despite Stablecoin Growth appeared first on Coinpedia Fintech News
Bitcoin’s (BTC) price slipped to $56k on Thursday before regaining the crucial support level above $58k during the early European session on Friday. The flagship coin has been forming a bullish flag in the past few days, which could lead to a potential breakout towards $67k soon.
However, the ongoing crypto correction that began in March 2024 has increased fear of further crashes in the coming weeks before the inevitable rebound to a new all-time high. Moreover, Bitcoin’s fear and greed index has maintained below 30 percent, demoting extreme fear in the past few days.
Bitcoin Price and Major Stock Indexes
Despite the notable adoption of Bitcoin by institutional investors, as shown by the approval of spot BTC ETFs and central banks’ indirect exposures, the flagship coin has lagged behind the ongoing rebound in the stock market.
“Traders are perplexed by the current disconnect between the strong rally in U.S. tech stocks and the underperformance of the crypto market,” analysts at 10Xresearch noted.
Ballooning Stablecoins Supply
The stablecoins supply has gradually increased since the August 5 crypto crash, which wiped out over $1.5 billion from leveraged traders. Led by Tether USDT, on-chain data shows a significant spike in stablecoins flow to centralized exchanges, which are presumed to be buying the dip.
Earlier today, Circle minted $250 million on the Solana (SOL) network, and since the crypto correction began in April, it has minted $4.5 billion.
In the past two days, Cumberland has transferred more than 320 million USDT to different CEXs. According to on-chain data, Cumberland has received over $1.2 billion from Tether and sent them to different exchanges since August 5.
The notable spike in stablecoins supply is assumed to indicate a bullish sentiment, as more institutional investors rush to accumulate.
Midterm Price Targets
Bitcoin price is at a crucial crossroads that could lead to further capitulation towards $50k or a major rebound above $67k. From a technical standpoint, Bitcoin price must regain the crucial support level above $59k to ensure bullish momentum in the near term.
With August and September anticipated to remain bearish months for the crypto space, a possible Bitcoin price retrace to $50k before a rebound to a new all-time high is very likely.
