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Is a new rally brewing as Bitcoin reclaims $38K and stablecoins 'flooding' exchanges?

Published 01/14/2021, 03:03 AM
Updated 01/14/2021, 04:40 AM
Is a new rally brewing as Bitcoin reclaims $38K and stablecoins 'flooding' exchanges?
BTC/USD
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BTC/USD
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The price of Bitcoin (BTC) has extended its recovery on Jan. 14, reclaiming the $38,000 level. What's more, the weekly candle has now turned green for the fifth consecutive week despite the 28% crash earlier this week.

BTC/USD Weekly candle chart (Bitstamp). Source: Tradingview

Meanwhile, stablecoin deposits are flooding into cryptocurrency exchanges, according to data from CryptoQuant. This inflow may act as a short-term catalyst for Bitcoin as it suggests that sidelined capital is moving back into BTC.

Stablecoins inflow on exchanges. Source: CryptoQuant
Exchanges' stablecoin reserve. Source: CryptoQuant
Bitcoin futures open interest. Source: Bybt.com

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