Bitcoin’s (CRYPTO: BTC) struggle to surpass its all-time highs is attributed to a slowdown in stablecoin minting following the halving event, according to cryptocurrency research firm 10x Research.
What Happened: In its latest report shared Sunday, 10x Research highlighted that the Bitcoin halving event that occurred on April 20 led to a notable slowdown in the minting of stablecoins. Furthermore, wallets holding more than $10 million in stablecoins have seen a decline. This trend is currently impeding Bitcoin’s progress.
Typically, a spike in stablecoin holdings indicates strong buying pressure and bullish sentiment in the market. Most traders use stablecoins to enter and exit trades on cryptocurrency exchanges.
Conversely, a drop in stablecoin reserves underlines weakening demand for cryptocurrencies.
Additionally, the report revealed that nearly 100,000 Bitcoin, worth $6.75 billion, were withdrawn from exchanges last month. This record-breaking movement was primarily driven by two U.S.-focused exchanges, Kraken and Coinbase, which saw withdrawals of 55,000 BTC ($3.8 billion) and 24k BTC ($1.7 billion) respectively.
The sharp fall in Bitcoin’s reserves on exchanges indicated a sell-side liquidity crisis, meaning that demand was outpacing supply.
Why It Matters: The latest report comes following an optimistic forecast by 10x analysts last week. A head-and-shoulders formation for Bitcoin could soon break through the resistance line, possibly pushing its price toward $83,000 in the near term, the report read.
Another bullish forecast observed that Bitcoin is nearing a significant technical breakout, potentially reaching a milestone of $100,000. Maintaining levels above $70,000 could increase the likelihood of the King Crypto reaching $100,000.
Price Action: At the time of writing, Bitcoin was exchanging hands at $69,542.93, rising marginally by 0.42% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
