Bitcoin
BTC$65 423.69

-1.35%

Ethereum
ETH$3 429.98

-4.52%

Tether
USDT$1.000044

0.06%

Binance Coin
BNB$594.61

-1.93%

Solana
SOL$135.08

-8.99%

USD Coin
USDC$1.000152

0.01%

Bitcoin price dips below $60000. But here's why a bigger rally may be brewing


15 Mar 2021

#Bitcoin

Bitcoin (BTC) pared some gains, dipping below $60,000 on March 14, a day after setting a new all-time high of $61,950 on Binance. However, on-chain data indicates that the uptrend is likely to continue in the near term. One key metric that is signaling an optimistic short-term trend for Bitcoin is the rise in stablecoin deposits into exchanges. Although high funding rates and an overcrowded market are causing the price to pull back, the entrance of sidelined capital into the crypto market may further boost Bitcoin’s momentum. When Bitcoin enters price discovery and hits a new record-high, the interest in the market naturally spikes. There is a lot of liquidity in the current red-hot market, making it an ideal period for whales and high-net-worth investors to take profit on their positions.

But despite, the halt in the rally, stablecoin inflows into exchanges are rising once again, according to the latest data from CryptoQuant. In the crypto market, traders often hedge their holdings against stablecoins like Tether (USDT) and USDC, rather than cashing out via withdrawals to bank accounts. Typically, exchanges have a three to seven-day processing period for cash deposits, and when traders want to re-enter the cryptocurrency market, moving cash from their bank accounts back to exchanges becomes cumbersome. Hence, when stablecoins begin to flow into exchanges again — as seen by the green spikes in the chart above — it suggests that sidelined capital may be looking to get back into Bitcoin.

When Bitcoin rallies without a noticeable rise in stablecoin inflows, it increases the probability of an unsustainable uptrend and a short-term correction. If the trend of sidelined capital moving back into the crypto market continues, there is a high probability that this will further fuel Bitcoin’s momentum resulting in a broader rally.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 86.8% 15 $65 423.69 -1.35% -4.07% $1 289 746 438 847 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 83.2% 23 $3 429.98 -4.52% -4.68% $419 407 502 849 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 91.6% 1 $1.000044 0.06% 0.04% $112 557 594 906 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 86% 25 $594.61 -1.93% -4.93% $87 755 290 405 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 79.2% 42 $135.08 -8.99% -13.74% $62 377 468 585 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 94% 3 $1.000152 0.01% 0.01% $32 548 974 650 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 79.6% 31 $0.491101 0.81% 0.47% $27 290 716 733 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 66.4% 67 $7.45 -5.59% 6.12% $18 168 609 687 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 69.6% 61 $0.121744 -10.21% -14.25% $17 622 960 204 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 80.4% 41 $0.377205 -9.02% -13.21% $13 479 212 450 ADA 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 54.8% 94 $0.000018 -12.40% -20.09% $10 615 248 696 SHIB 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 71.2% 59 $26.34 -10.87% -17.78% $10 362 409 683 AVAX 7 days price change
13 Lido stETH (STETH) STETH Lido stETH predictions 94.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 95.6% 2 $65 413.97 -1.45% -4.15% $10 023 757 318 WBTC 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 92.8% 9 $0.114218 -2.83% -2.92% $9 985 272 047 WTRX 7 days price change

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