The struggling of Bitcoin (BTC) to surpass its all-time highs is attributed to a slowdown in stablecoin minting following the halving event, according to cryptocurrency research firm 10x Research.
In its latest report shared on Sunday, 10x Research highlighted that the Bitcoin halving event that occurred on April 20 led to a notable slowdown in the minting of stablecoins.
Furthermore, wallets holding more than $10 million in stablecoins have seen a decline. This trend is currently impeding Bitcoin’s progress.
BIG Week for #BITCOIN: 100,000 Bitcoins Removed From Exchanges ->
👇1-11) Currently, near the top of its range, Bitcoin faces a challenge in breaking above new all-time highs. This can be attributed to the Bitcoin halving on April 20. Following this event, the minting of… pic.twitter.com/XOIGVGrZuT
— 10x Research (@10x_Research) June 10, 2024
Typically, a spike in stablecoin holdings indicates strong buying pressure and bullish sentiment in the market. Most traders use stablecoins to enter and exit trades on cryptocurrency exchanges.
Conversely, a drop in stablecoin reserves underlines weakening demand for cryptocurrencies.
Additionally, the report revealed that nearly 100,000 Bitcoin, worth $6.75 billion, were withdrawn from exchanges last month. This record-breaking movement was primarily driven by two U.S.-focused exchanges, Kraken and Coinbase, which saw withdrawals of 55,000 BTC ($3.8 billion) and 24k BTC ($1.7 billion) respectively.
The sharp fall in Bitcoin’s reserves on exchanges indicated a sell-side liquidity crisis, meaning that demand was outpacing supply.
The latest report comes following an optimistic forecast by 10x analysts last week.
A head-and-shoulders formation for Bitcoin could soon break through the resistance line, possibly pushing its price toward $83,000 in the near term, the report read.
Another bullish forecast observed that Bitcoin is nearing a significant technical breakout, potentially reaching a milestone of $100,000. Maintaining levels above $70,000 could increase the likelihood of the King Crypto reaching $100,000.
At the time of writing, Bitcoin was exchanging hands at $69,361, rising marginally by 0.42% in the last 24 hours, according to data from Coinstats.
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