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How Binance’s $22 Billion Stablecoin Inflows Powered Bitcoin’s Rally
The recent surge in the price of Bitcoin has sparked a lot of interest and debate among cryptocurrency enthusiasts. While some attribute it to factors such as institutional investment, others believe that it is the result of stablecoin inflows from major exchanges like Binance.
As per data provided by an analyst identified as Darkfost, Binance reported at least $22 billion in stablecoin inflows for the year 2024 alone. This figure represents a significant increase compared to previous years and highlights the growing importance of this market.
According to joaowedson, another expert in the field, it is crucial to note that cryptocurrency exchanges hold a significant portion of the total market cap of stablecoins. In fact, at least 24.16% of the total market cap is held by these exchanges. This information provides valuable insights into how these entities can influence the price of Bitcoin and the broader crypto market.
Moreover, there are indications that higher stablecoin reserves have been pushing prices higher across the cryptocurrency market. Therefore, it can be inferred that Binance’s $22 billion stablecoin inflows played a crucial role in driving up the price of Bitcoin to its current milestone of $100K.
In conclusion, Binance’s growing dominance in the stablecoin space highlights the critical importance of liquidity in the crypto market and how this affects Bitcoin prices.
Source: coinpedia.org
