The Impact of Stopping Institutional Stablecoin Buying on Bitcoin Price

Bitcoin Falls Under $59K: Impact of Institutional Stablecoin Buying Freeze

On August 12, the price of Bitcoin dropped 1.94% on the previous day to settle at $58,930. An X post from on-chain analytics site Lookonchain suggests that the decline below the $60,000 threshold was probably brought on by big institutions ending their stablecoin buying frenzy. Since stablecoins are the primary on-ramp that investors use to transition from the fiat to the cryptocurrency sector, a lack of institutional stablecoin inflows to crypto exchanges may indicate a lack of buying pressure and investor appetite for the underlying asset.

Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.

Lookonchain

Rekt Capital: Bitcoin Aims for $65K After Reclaiming $60,600 Support

After hitting a five-month low of more than $49,500 on August 5, the price of Bitcoin recovered by more than 21% to reach above $60,000 by August 9. When significant institutional stablecoin inflows start up again, the price of Bitcoin can rise above the psychological resistance level of $60,000. Popular analyst Rekt Capital stated in an Aug. 10 X post that, in terms of technical analysis, the price of Bitcoin has to regain $60,600 for the next leg up.

Bitcoin is doing all the right things to confirm $60,600 as support so as to position price for a revisit of $65,000+ over time.

Rekt Capital

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