Stablecoin Inflows to Exchanges Could Propel Bitcoin Price to New ATH

Bitcoin’s price has resumed its bullish trajectory, edging closer to its all-time high of $108,200. Recently, Bitcoin surged to $105,847, marking its highest price level since December 18, with a significant jump from this week’s low of $82,055. This upward movement comes as markets react positively to several key factors, including encouraging U.S. inflation data and the anticipation surrounding Donald Trump’s upcoming inauguration.

A major influence on the market is the potential shift in U.S. regulatory policy towards cryptocurrencies under the Trump administration. Trump has consistently expressed a crypto-friendly stance, promising to make the U.S. a global hub for digital assets. This vision includes the possibility of establishing a strategic Bitcoin Reserve in the first 100 days of his presidency, which has heightened investor optimism. As a result, Bitcoin’s price has seen significant inflows, with spot Bitcoin ETFs adding $755 million and $626 million in the last two days alone. Cumulative flows into these ETFs have now reached an impressive $38 billion.

Additionally, stablecoin inflows into exchanges are another key factor likely to propel Bitcoin’s price to new heights. Data from CryptoQuant reveals that stablecoins have continued to flow into exchanges, a trend that is critical for the broader cryptocurrency market. Since stablecoins are commonly used to purchase Bitcoin and other digital assets, these inflows suggest there is considerable buying pressure poised to drive Bitcoin’s price upward. With a stablecoin-backed surge in market activity, Bitcoin could see further demand, pushing its price past its previous high.

From a technical perspective, Bitcoin’s price chart also shows strong bullish signals. The weekly chart reveals a bullish engulfing pattern, which is often interpreted as a positive sign for price movement. This pattern consists of a large bullish candlestick that completely engulfs the preceding bearish candle. This is often followed by a strong continuation in the price trend.

Moreover, Bitcoin has formed a bullish pennant pattern, which is considered a powerful bullish continuation signal. This formation consists of a sharp upward price movement followed by a period of consolidation, represented by a symmetrical triangle. Historically, the breakout from a pennant pattern is often followed by a significant price increase, as seen with Ripple (XRP) earlier this week.

Bitcoin is also holding strong above its 50-week and 100-week moving averages, indicating a sustained bullish trend. Furthermore, Bitcoin’s price has recently moved well above the $68,930 level, the upper boundary of a cup-and-handle pattern that formed from 2021 to November of last year. This technical setup suggests that Bitcoin has considerable upward momentum and is likely to continue climbing.

Given these bullish technical signals, combined with the positive sentiment surrounding potential regulatory changes and increased inflows, Bitcoin is on track for a breakout towards its all-time high of $108,200. If Bitcoin surpasses this level, it could quickly reach the next psychological milestone at $100,000, driven by a continued wave of institutional interest and retail buying activity. The confluence of strong fundamentals, a supportive macroeconomic environment, and favorable technical indicators makes Bitcoin a strong contender for a new record high in the near future.