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Bitcoin Price Could Rise 8-10% with $1 Billion Stablecoin Inflows, Says MEXC’s Tracy Jin
Bitcoin (BTC) continues to benefit from the growing role of stablecoins in the cryptocurrency ecosystem. On April 30, Tracy Jin, COO of the crypto exchange MEXC, shared her insights on how stablecoin-driven liquidity is influencing Bitcoin’s price trajectory. According to Jin, the steady inflow of stablecoins like Tether and Circle into Bitcoin has been a key driver of its price growth this year.
“Fiat inflows converted into Tether and Circle are steadily flowing into Bitcoin, and that remains the primary driver behind its price growth this year. Right now, every additional billion in stablecoins tends to push Bitcoin up by 8 to 10 percent,” said Tracy Jin of MEXC.
The Resilience of Stablecoin Demand
Despite ongoing macroeconomic uncertainties, the demand for stablecoins remains high. Jin highlighted that the total stablecoin market capitalization has grown by over $38 billion year-to-date, providing increased liquidity that supports Bitcoin’s upward price movement.
“Despite the recent volatile market landscape, stablecoin demand has remained resilient, growing over $38 billion year-to-date. Stablecoins now account for 1% of the global M2 USD money supply, processing over $33 trillion in volume in the last year, including $2.8 trillion in the last month alone,” Jin noted.
Why Stablecoins Matter for Crypto Investors
Stablecoins play a pivotal role in bridging the gap between traditional financial markets and the cryptocurrency ecosystem. They provide a reliable hedge against volatility and facilitate transactions across crypto platforms, making them indispensable for investors during uncertain market conditions.
Jin emphasized that the utility of stablecoins could drive their market capitalization to over $2 trillion by 2026, a substantial increase from the current level of $241 billion. This growth could significantly enhance Bitcoin’s liquidity and further bolster its price.
“With many sovereign banks and corporations exploring stablecoin issuance, particularly in other fiat currencies, and governments prioritizing regulation clarity, the stablecoin market cap could exceed $2 trillion by 2026 as they continue to drive the evolution of financial services, serving as a hedge against volatility and a launchpad for broader capital deployment,” Jin explained.
Potential Impact on Bitcoin
If the stablecoin market reaches $2 trillion, it would represent a 200% increase from its current level. For Bitcoin, this surge in liquidity is likely to place upward pressure on its price, creating new opportunities for investors in the cryptocurrency space.
Stablecoin-driven liquidity growth is becoming an increasingly important factor in understanding Bitcoin’s price movements. As the cryptocurrency ecosystem evolves, the role of stablecoins is expected to expand further, offering new ways to stabilize and enhance digital asset markets.
