Bitcoin (BTC) has reached another all-time high earlier today smashing $49k for the first time. Will we see a $50k Bitcoin price today?
After smashing $49k, Bitcoin then corrected and bounced between $48.5k and $49k for a few hours before smashing $49k again.
At time of writing, the Bitcoin price is sitting at its newest all-time high $49,197.
After bouncing up from $44.5k on Thursday, the Bitcoin price has been hovering around $47-48k since and met some resistance at $48k, but it finally smashed it today, on Valentine’s Day.
High Stablecoin Inflows Key To Bitcoin Rally
On-chain analysts are pointing towards the continued increase in stablecoin inflows for confirmation of a continued rally.
According to data from data analytics firm CryptoQuant, the Stablecoin Supply Ratio (SSR) has risen significantly as the Bitcoin price rallied from the mid-$30k region.
The SSR indicator shows the ratio of the Bitcoin market cap relative to the aggregated market cap of stablecoins. When the Bitcoin price rises in along with the SSR ratio, it shows the Bitcoin price is being driven by capital re-entering the market.
USDT and USDC circulating supply have increased by $10b and $3b, respectively, since just the beginning of the year. This is very bullish because it shows the price rise is being driven by new money entering the space and not over-leveraged futures markets.
Macro Factors Will Push Bitcoin Past $50k And Beyond
After setting an all-time high of around $42k on 16 January, Bitcoin then corrected and consolidated between $30k and $38k for the next 3 weeks.
A relatively long consolidation period like this usually leads to two scenarios: a severe breakdown or a major breakout.
Then on Monday 8 February, after Elon Musk announced Tesla had invested $1.5 billion in Bitcoin, the price rocketed and has been hovering in the high-40s since.
However, after meeting resistance at $48k all week, there was concern whether the bulls had the legs to take us past $48k and onwards. Now that and $49k has been smashed, is it likely we will see Bitcoin smash $50k any time soon?
It’s worth noting that the latest price rise comes on the back of news that America’s biggest banks are looking at adding support for Bitcoin, while the city of Miami is looking into allowing its residents to start using Bitcoin as a payment service.
And with Canada approving a first ever Bitcoin ETF, it’s clear that macro factors are strengthening Bitcoin’s fundamentals.
Strong On-Chain Analysis And Macro Factors Pointing North
On-chain analysis shows lots of new money is entering the space, so we have reason to believe this rally has a long way to go.
And with major news from the likes of Tesla, investment banks and the city of Miami looking to plug itself into Bitcoin, they will trigger other institutions to FOMO into the Bitcoin space.
This will help push the Bitcoin price up, which will in-turn entice other institutions to FOMO in. This reflexive loop is slowly gaining pace, and as the Bitcoin price rises so will the size of the institution.
Will Bitcoin break $50k today? It’s very likely, and with all the strong on-chain analysis and macro factors supporting the rally, we have several reasons to believe this rally is just getting going.