Can Stablecoin’s ‘Dry Powder’ Effect Propel Bitcoin Past 100K Once Again?

Bitcoin has rebounded from the $94,000 price level and trades at $97,000.
The stablecoin (USDT and USDC) supply on exchanges has skyrocketed.
Analyst Tony Edward believes that Bitcoin prices will soon surge if BTC finds support.

Stablecoin supply is surging while Bitcoin supply on exchanges is dwindling, according to Tony Edward of the Thinking Crypto Podcast. And this ‘dry powder’ by way of surging stablecoin reserves, can drive Bitcoin past $100K once again.

Aiming to capture the $2 trillion valuation once more, on-chain data and technical indicators reveal the bull market is far from over.

Edward highlighted this trend on X (formerly Twitter). He suggested that the increasing stablecoin reserves on exchanges indicate a buildup of buying power that could propel Bitcoin’s price higher. He explained that this “dry powder” represents traders who took profit during the recent market surge and are now waiting for the opportune moment to re-enter the market.

Bitcoin (BTC) rebounded from $94,000 and reached $97,000, trading at $97,524.40 at the time of writing. The digital asset is aiming for $100,000 and a $2 trillion valuation. Despite the recent crash, data suggests that higher prices are possible.

In a YouTube podcast, Edward explained that Bitcoin and cryptocurrencies could fall further before becoming bullish. He predicts traders will use stablecoins on exchanges to purchase digital assets. This could soon act as the catalyst to a full-blown market surge.

Edward highlighted that the “miniscule” recovery of cryptocurrencies and Bitcoin reaching $97,000 in the past 24 hours is a positive sign. He added that if Bitcoin finds a second wind, breaks above $100,000 once again, and holds above it, the broader market will also skyrocket.

Bitcoin Price Analysis

The Bitcoin price analysis based on the daily chart below shows that the Relative Strength Index (RSI) is 58.04. This means that bulls control the BTC price action. The line’s gradient suggests that higher prices are likely.

The MACD indicator confirmed a bearish divergence for XRP a few days earlier, and the histogram also turned bearish. The current correction was expected after the RSI remained in the overbought region for a long time. Now, investors can expect the BTC price to bottom out soon.

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