George Tung, a well-known crypto analyst and host of the YouTube channel CryptosRUS, has identified an interesting trend in the crypto market. Specifically, he has noted a significant amount of stablecoins waiting on the sidelines, totaling around $126 billion in market capitalization. Although this represents a drop of $35 billion since a year ago, a substantial amount of money is still waiting to be put to work.
Stablecoin Reserves Could Drive Market Growth
According to Tung, this pool of stablecoins could serve as a significant catalyst for the market in the future. Once this money begins to flow, it could drive the entire market up and even cause a massive Bitcoin short squeeze. Tung believes that this could be a major turning point for the entire market, leading to a significant rise in Bitcoin prices.
Bitcoin Price Analysis
Despite a bullish quarter in terms of price gain, Bitcoin has been struggling to overcome a crucial hurdle for the past two weeks, leading to a tight consolidation. At the start of Q2, Asian session traders appear to be booking profits, causing Bitcoin to trade down 2.4% on the day at $27,786 during Monday morning’s Asian trading session, according to CoinGecko.
Resistance to the upside is around $29,000 to $29,500, with lower support levels slightly above $27,000. Despite the bullish quarter, Bitcoin market liquidity has dropped to a 10-month low, partly due to the bank run in the United States and ongoing regulatory actions on crypto companies.
Related: Regulatory Uncertainty Forces Bittrex to Shut Operations In USA! What’s Next? – Coinpedia Fintech News
At the time of writing, Bitcoin was worth $28,355.
Source: https://coinpedia.org/bitcoin/bitcoin-news-the-potential-of-a-massive-short-squeeze-hovers-what-next-for-btc-price/