Record-breaking deposit signals major bullish pressure for bitcoin

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An unprecedented movement reported by the data provider on-chain CryptoQuant, anticipates bullish potential for bitcoin (BTC). This is the largest entry of the USD Coin (USDC) stablecoin in history on the Coinbase exchange.

As the graph shows, inflow was over $1.4 billion in USDC. “This sizable deposit indicates potentially significant buying pressure” for bitcoin, said Maarten Regterschot, market researcher and community manager by CryptoQuant.

Capital inflows in USDC on exchanges. Source: CryptoQuant.

The specialist explained that these stablecoins, which maintain their price equal to the US dollar, can be used to buy bitcoin. That is why its entry into exchanges usually drives BTC higher, especially when it comes to large volume.

To put it in perspective, he indicated that The only deposit comparable to the current one occurred for USD 1.3 billion a little over a year ago in January 2023. That preceded a sustained rise in the price of bitcoin from the cycle low of $16,800, marking the definitive bottom of that cycle. This can be seen below.

Bitcoin price in just over a year. Source: TradingView.

Bitcoin is in a period of consolidation

The unprecedented entry of USDC anticipates that the USD 60,000 that bitcoin set foot on recently they could be a local minimum of the current upward trend. In other words, the market may be preparing to increase its demand at current prices, driving the upside.

The currency has been lateralizing in the last three weeks between USD 60,000 and USD 73,700, its new all-time high. In this way, the market is currently in a consolidation stage after setting such a record.

This scenario takes place while analysts remain bullish in the medium term due to the halving scheduled for the second half of April. This event, which occurs every four years, is the halving of the currency’s issuance, which limits the sales pressure, leading to an increase in price.

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