Bitcoin News Today: Bitcoin Stabilizes Near $120,000 as $2 Billion Stablecoin Inflow Signals Bullish Momentum

Bitcoin (BTC) is currently stabilizing within the $116,000 to $120,000 range. However, a fresh influx of $2 billion in stablecoins could potentially propel the flagship cryptocurrency to new all-time highs (ATHs).

According to a CryptoQuant Quicktake post by contributor Amr Taha, more than $2 billion worth of stablecoins, primarily Tether (USDT), were deposited into major derivatives trading platforms. Taha believes that this surge in inflows signals an increased appetite for leveraged positions among seasoned traders, many of whom are anticipating a potential breakout in BTC’s price. Notably, this fresh batch of USDT was minted by Tether Treasury, suggesting institutional demand is driving the activity.

Historically, large-scale stablecoin inflows have preceded bullish market momentum, as traders often use them to open long positions on Bitcoin and altcoin futures and perpetual contracts. Rapid stablecoin deposits into derivatives exchanges often act as a leading indicator for major price rallies.

Meanwhile, fellow CryptoQuant contributor TraderOasis pointed to rising Open Interest, noting that it is increasing alongside BTC’s price – a classic signal of strong bullish sentiment. Rising open interest in tandem with a rising Bitcoin price typically signals increasing market participation and bullish sentiment, as more traders are opening positions expecting further upside. However, it can also indicate a buildup of leverage, which may lead to heightened volatility or a sharp correction if sentiment shifts.

The analyst also highlighted the Coinbase Premium Index, which remains above zero – a sign that US-based buyers are paying a premium over global spot prices. TraderOasis noted that while BTC price is rising, the Coinbase Premium Index indicator has remained relatively flat. The analyst explained that this suggests major players are taking profits. If the descending trend structure is broken, the price is likely to rise much more strongly. On the other hand, if the indicator drops below the ‘0’ level, it may be considered a buying signal, as the market is still in a macro bullish phase.

While the $2 billion stablecoin injection is likely to act as a bullish catalyst for BTC and the broader crypto market, some exchange data suggests a potential short-term pullback before the next leg up. For instance, BTC deposits to exchanges spiked after the digital asset hit a recent high around $123,000 – a pattern that often precedes local tops and is typically followed by a price correction. That said, despite recent profit-taking, BTC has not experienced a major price drop, pointing to robust underlying demand. At press time, BTC trades at $119,171, up 2.4% in the past 24 hours.