10X Research: Stablecoin issuance indicates that institutions are injecting new funds into the market, and if the issuance trend continues, it may drive bitcoin higher

In its analysis, 10x Research says that monitoring and analyzing cryptocurrency fund flows is essential to assess market conditions and could be an indicator of whether Bitcoin and other cryptocurrencies are going up or down. As broad money flows largely ceased in early April 2024, a subsequent price correction is expected. However, a pick-up in certain fund flows has helped boost prices as the market nears its bottom. The key factor is monitoring the sustainability of these fund flows, as rallies tend to lose momentum without sustained support. Last night, Tether issued an additional USDT of 1 billion USD (although it appears to be an inventory build rather than an immediate issue). However, earlier last week, Tether and Circle issued nearly 2.80 billion USD stablecoins, indicating that some institutional investors are pumping new money into the crypto market. If this trend of issuance (not just minting) continues, bitcoin could rise further.