Bitcoin price metrics and influx of stablecoins hint at rally continuation
Bitcoin is currently trading at $89,077, down 0.5% in the last 24 hours and 4.5% below its all-time high. Despite this pullback, there is growing optimism around a potential pro-crypto administration under Donald Trump, increased stablecoin inflows into exchanges, and investor interest in Bitcoin exchange-traded funds (ETFs). Notably, significant inflows of stablecoins into exchanges, historically a precursor to price rallies, have been observed. The Coinbase premium index has risen, reflecting strong US demand, while inflows into US-based spot Bitcoin ETFs exceeded $4.7 billion recently. Furthermore, Bitcoin's market value realized value (MVRV) ratio indicates that it is not overvalued, suggesting further upward potential. The current upper price band for Bitcoin could signal a new price discovery phase if surpassed, with the $100,000 level being a realistic target as the market anticipates Trump's potential policy changes that could favor Bitcoin.
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