This Could Be the Catalyst for the Next Bitcoin Rally, According to 10x Researcher

10x Research, a digital asset investment firm, has commented on potential catalysts that could drive the next bitcoin (BTC) rally.

In an X post on Wednesday, the researcher Markus Thielen projected that the leading cryptocurrency could see a significant surge in price if the current trend of stablecoin issuance continues. 

Is Bitcoin Rally Incoming?

According to Thielen, the nearly $2.8 billion stablecoin inflow is an indication that some institutional investors are injecting fresh capital into the crypto market. This development is expected to potentially drive a significant surge in the Bitcoin price. 

He emphasized the importance of monitoring and analyzing these money flows, as they can act as tailwinds or headwinds for cryptocurrency prices. Doing this will enable traders to watch the critical signals these flows offer thereby avoiding being caught off guard often by price crash. 

Furthermore, the researcher mentioned that money flows can predict price movements in both directions though many miss these indicators. 

“Since broad money flows largely paused in early April 2024, the subsequent price correction was expected. However, a resurgence in certain money flows helped lift prices as markets approached bottoms. The critical factor was monitoring the sustainability of these flows, as rallies often lost momentum without continued support,” the post said. 

Therefore, the most recent activities involving major stablecoin issuers like Tether minting USDT could suggest fresh capital entering the market, potentially leading to further price gains if this trend continues.

Notably, the researcher pointed out the $1 billion in USDT Tether minted yesterday, categorizing it as an inventory build rather than immediate market issuance. This distinction is important because it implies a preparatory step for potential future market actions rather than an immediate liquidity injection.

Impact on Bitcoin Price and Market Dynamics

Historical data suggests a link between large-scale minting and Bitcoin price movements. For example, the minting events in November and January coincided with short-term increases in the price of Bitcoin. 

Larger mintings, such as the 3 billion USDT event in March, were followed by longer-term bullish trends, propelling Bitcoin above 70K.