Marcus Thielen Names Condition for Bitcoin’s Continued Growth

Growing stablecoin supply could be key to Bitcoin’s continued rally, according to 10x Research founder and CEO Markus Thielen.

Over the past week, the largest stablecoin issuers by market cap, Tether and Circle, have issued nearly $2.8 billion in assets, which Thielen estimates indicates that β€œsome institutional investors are injecting fresh capital into the crypto market.”

“If this trend of issuing (not just minting) continues, Bitcoin could see further growth,” the analyst noted.

According to Thielen, favorable data on consumer inflation in the US alone will not be enough for digital gold to overcome the resistance zone of $60,000-61,000.

Sustained gains will likely require β€œreal money purchases via stablecoins,” a factor that has been critical to the sustainability of price breakouts since the start of the year, while others have had less of an impact, Thielen said.

Tether CEO Paolo Ardoino, commenting on the company’s August 13 release of 1 billion USDT on Ethereum, confirmed the analyst’s opinion that this does not mean that the coins will immediately hit the market. The head of the issuer said that the amount is authorized as reserves for future demand and crosschain-swaps.

According to CoinGeckoUSDT capitalization reached a record $116.2 billion. Circle’s USDC indicator has added 4.5% since the beginning of August and is now $34.5 billion.

β€œGiven Circle’s connections to more regulated counterparties than Tether, these flows were likely coming from US institutions profiting from the downturn,” Thielen said.

However, without other factors such as a changing macroeconomic situation and more accommodative policies Fed “In the short term, Bitcoin will continue to trade sluggishly,” the expert concluded.

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Source: Cryptocurrency

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