Recent figures coming from coinroop suggests that Binance has crossed a significant milestone with its stablecoin reserves reaching all time high of $31 billion.
This is remarkable given that its worth was only $7 million in June 2023. The figure is impressive as it indicates an over 5 time increment in a span of just 6 months.
Such an increase usually indicates the rise in buying pressure exerting the market in the positive direction due to the confidence enjoyed by the investors.
While analyzing crypto data the platform explained that investors are expecting a demand and strength in the relevant market since now the reserve figures are in the $30 billion range.
These figures correlate with the market expectations, especially with bitcoin poised to hit the magical figure of $120, 000. Currently bitcoin is close to $94, 000 mark trading lower after a 13 percent drop from reaching its highest point of $108, 300 and is expected to reach back to this target figure of $120, 000.
May be so, QCP Capital’s analysts note that restrictions and lack of trading volume have posed a threat to Bitcoin’s spot market further bringing about price gaps and lack of recovery.
The price drop is further heightened by net outflows from spot ETFs amounting to USD 1.8 billion since December 19 and Microstrategy not buying much bitcoin.
This slow down in momentum also corresponds with the market trend as even the international and local indices like S&P 500 and NASDAQ have started declining, worsened by fear around global trade as we move into the year 2025.
Still, QCP Capital seeks to highlight considerable percentage change in price of Bitcoin in 2024 at the rate of 120% which surpasses stock and gold.
The firm expects major relocations within institutions on inception of 2025 as January Intersects with the month of the new year to bolster the market.
With increase in institutional adoption especially among university endowment funds it is envisaged that the Bitcoin market share would increase in effect bringing measures for the spot price to be more stable and also volatility similar to equities would be reduced.
Furthermore, QCP expects demand for puts as a hedge to increase while more covered call selling at the peak of the market.
According to Glassnode’s data, STHs are still in profit with an unrealized gain of more than 7.9%.
This means that many recent buyers have their positions placed below the market price at an average price of about $86,600. Such price is indeed gaining ready critical levels for price action both psychologically and technically.
Moreover, Ki Young Ju, founder of CryptoQuant, pointed out a rising trend with regard to Bitcoin whales which privacy transaction.
Over the past 2 years, the volume of Coin Join transactions has increased three times a year, suggesting an increase in anonymous transactions of Bitcoin.
