Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Here's another fantastic weekend to enjoy with your loved ones. Let's talk about crypto market. Today i am going to discuss on-chain metrics, specifically focusing on USDT liquidity and Bitcoin. The current market cap of USDT has reached $121 billion, which means between 2015 and 2024, $121 billion has been minted. In the last 7-8 months, the market cap has increased by $17-18 billion, but this fresh money has not yet impacted the crypto market positively because it has mostly remained sidelined. However, recently, we saw over $9 billion in stablecoins deposited on centralized exchanges as of November 6th. This has led us to analyze the potential impact of this capital on Bitcoin. Historical data shows that whenever stablecoin inflows spike on exchanges, Bitcoin tends to pump. For instance, in 2020 and 2021, we saw a significant increase in stablecoin deposits, followed by Bitcoin reaching new highs.
When $1 billion is injected into Bitcoin, its market cap typically increases by 40 times. So, with $9.3 billion deposited, Bitcoin’s market cap could increase by $370 billion, potentially pushing its price to around $87,000-88,000. However, the market is maturing, so returns may not be as high as in the past. Additionally, when looking at Bitcoin's net flow, we notice that large amounts of Bitcoin have been withdrawn from exchanges, indicating a bullish sentiment in the market. Historically, Bitcoin tends to rally significantly after breaking key retracement levels. Currently, Bitcoin has broken the 50% Fibonacci retracement level, which could lead to another rally, potentially reaching levels of $86,000 to $100,000. In conclusion, stablecoin deposits and Bitcoin's behavior after retracement levels suggest potential growth in the coming weeks, although returns may be lower than in previous bull That's it for today. Here's the latest update video of crypto market. Thanks & have a good day!!
