Stablecoin inflows to exchanges may push Bitcoin price to ATH

Bitcoin price resumed its upward trend and approached its all-time high of $108,200 before Donald Trump’s inauguration and following encouraging US inflation data.

Bitcoin (Bitcoin) to a high of $105,847, the highest since December 18, and well above this week’s low of $82,055.

Cryptocurrency investors will likely cheer Trump’s upcoming inauguration and the potential regulatory changes that may follow. Trump has pledged to be a cryptocurrency-friendly president and seeks to make the United States the cryptocurrency capital of the world.

While the United States already mines most cryptocurrencies, critics of cryptocurrencies often point out that Bitcoin is energy-intensive. Proof of work The mining process is considered inconsistent with energy conservation initiatives.

Trump who recently He launched his own meme coinalso runs World Liberty Financial, a cryptocurrency project that has raised millions of dollars, including from Justin Sun.

His administration also wants it Give priority to cryptocurrenciesThis is a step that could lead to large inflows. All spot Bitcoin ETFs added $755 million and $626 million in inflows in the past two days, bringing cumulative inflows to 38 billion dollars.

Chances of Trump creating a strategic reserve for Bitcoin in the first 100 days of his administration rose to 42% compared to the lowest level this year, which is 20%.

Another potential catalyst that will push Bitcoin’s price to a record high is continued inflows of the stablecoin. Cryptoquant Data indicates that stablecoins have continued to flock to exchanges. This is notable given that stablecoins are used to purchase Bitcoin and other coins.

Bitcoin price has strong technicals

The weekly chart shows that Bitcoin price has done well this week. It has formed a bullish engulfing pattern, which is a common positive sign. This pattern consists of a large bullish candle that completely covers the previous bearish candle.

Bitcoin also formed a bullish pennant pattern consisting of a long vertical line and a symmetrical triangle. This pattern often leads to a strong breakout, as we saw with Ripple (XRP) this week.

XRP has been forming a bullish pattern since November last year.

Bitcoin remains above its 50-week and 100-week moving averages. It also moved well above $68,930, the upside of a cup-and-handle pattern that formed between 2021 and November of last year.

Therefore, Bitcoin is likely to witness a strong breakout and move to its all-time high of $108,200. A break above this level could take the price to the next psychological point at $100,000.