USDC Hits $2B: Is Bitcoin Losing Its Shine? 🤔💸

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  • USDC supply has skyrocketed to a two-year high, as if investors are whispering, “Better safe than sorry.” 🏦
  • Is this the eerie calm before the crypto storm? 🌪️

Are investors retreating in the New Year? USD Coin [USDC] supply has ballooned to $2 billion – its highest in 707 days, while the global crypto market cap takes a 3.49% nosedive. 📉

History whispers of a pullback, but with the current volatility, could a crash be lurking instead? 🤔

As investors flock to USDC for safety…

Trump’s inauguration is old news, the SEC has finally approved its first crypto regulation, and Bitcoin is still 6.18% below its $109K all-time high. 🎢

No doubt, this week’s rollercoaster has investors split – some are retreating, while others are HODLing like their lives depend on it, leaving BTC in a tug-of-war. 🥊

The good news? BTC is clinging to $100K, a level that’s sparked rebounds recently. In the last two weeks, BTC has dipped to this level three times, each time triggering a surge in outflows. 📈

Looks like investors are treating this as a discount sale. 🛒

However, Bitcoin is just 3.54% above its weekly gains that pushed it past $109K. If those gains slip, BTC could tumble to $98.4K. Adding to the caution, USDC supply has spiked to a two-year high. 📊

In just three days, USDC across exchanges dropped 17.21%, with Binance seeing an 18% decline. The jump in USDC supply to $2 billion from just $303K the previous day isn’t a fluke – investors are clearly playing it safe. 🎲

As more investors move to USDC or cash out after realizing profits, the pressure to absorb this liquidity now falls on institutions. 💼

MicroStrategy is doing its part, having already made two purchases totaling 3,600 BTC this month alone. 🛒

And it doesn’t stop there. BlackRock just made their largest Bitcoin buy of the year – $600 million worth of BTC. Could this be a sign of more institutional buying ahead that could stabilize the market? 🏦

Whose stability will investors choose?

Despite Bitcoin’s price fluctuations, ETFs are seeing steady inflows, keeping BTC above $100K with institutional support. 🏛️

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2025-01-23 19:03