Record $9.7B stablecoin inflows could drive Bitcoin to $100K

Stablecoin flows to crypto exchanges reached a record monthly high, signaling increased investor interest in the market. The surge may position Bitcoin to reach the $100,000 milestone before the end of November.

Stablecoin inflows to crypto exchanges hit a new monthly high of more than $9.7 billion.

This may signal an uptick in crypto investor demand, according to Leon Waidmann, head of research at The Onchain Foundation, who said in a Nov. 21 X post:

Stablecoin inflows to exchanges hit $9.7B in 30 days! The LARGEST monthly inflow EVER. Stablecoin liquidity is back. Speculative demand continues to explode!

Stablecoin net inflows to exchanges. Source: Leon Waidmann

The record monthly stablecoin inflows may put Bitcoin (BTC $97,343) on track to $100,000 before the end of November, historically the most bullish month for BTC returns.

Increasing stablecoin inflows to crypto exchanges can signal incoming buying pressure and growing investor appetite, as stablecoins are the main investor on-ramp from fiat to the crypto world. 

Related: MicroStrategy increases note sales to $2.6B for Bitcoin purchases

Can record stablecoin inflows push Bitcoin beyond $100,000?

Increasing stablecoin inflows can significantly impact the price of the world’s first cryptocurrency.

Tether minted $1.3 billion worth of USDT (USDT $1.00) from Aug. 5-9 as Bitcoin bottomed at a five-month low of $49,500 before starting to recover. Bitcoin staged a 21% recovery to $60,200 by Aug. 9, bolstered by Tether.

Some analysts expect Bitcoin to reach $100,000 before the end of the month, including Ryan Lee, chief analyst at Bitget Research, who told Cointelegraph:

If history repeats itself and Bitcoin prices grow as projected, a 14.7% from the current price level will push the coin well above the $100,000 target for the month. The post-halving cycle trend is also very positive when projecting the future of Bitcoin.

Bitcoin ETF Flow (USD, million) Source: Farside Investors

Spot Bitcoin exchange-traded fund (ETF) inflows also continue supporting Bitcoin’s price appreciation. The US Bitcoin ETFs amassed over $773 million worth of cumulative net positive inflows on Nov. 20, marking the third green day in a row, Farside Investors data shows.

The US spot Bitcoin ETFs recorded their sixth consecutive week of net positive inflows after amassing over $1.67 billion in the trading week of Nov. 11–15.