Today bitcoin finally broke through the magical $20,000 limit. But was this outbreak predictable? According to Ki Young Ju from CryptoQuant, the cryptocurrency analysis agency, you could see this movement coming. He looked at the influx of stablecoins into cryptocurrency exchanges.
According to Ki Young Ju, just before bitcoin shot through the $20,000 mark, an average of many stablecoins were deposited to addresses of crypto exchanges. It is very likely that these stablecoins were used to buy bitcoins. Immediately after the deposit, the bitcoin price flew to the moon.
Stablecoins are crypto coins with a value linked to a fiat currency, such as the U.S. dollar or the euro. The most popular stablecoin is tether, which is always worth one dollar.
Earlier this week we wrote that the purchasing power of stablecoins is increasing. The supply of stablecoins is growing rapidly. There is nearly $20 billion worth of tether in circulation. By comparison, at the beginning of this year the counter was just over $4 billion.
This is positive news for cryptocurrency rates. Stablecoins are often used to quickly step in when the price of bitcoin millionaire and ethereum, for example, is rising.
Also an all-time high in euros
Bitcoin has set a record not only in dollars, but also in euros. You can see that on the BTC Direct price chart below. The previous high of 16,727 euros was achieved on December 17, 2017. With almost 17,000 euros, the bitcoin price is now well above that.
Don’t want to miss out on all the action? Check out the live bitcoin price on this page.
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