Bitcoin Nears $100K Amid Rising USDT Inflows

Bitcoin has surged to $98K, fueled by rising USDT liquidity and renewed capital inflows into exchanges. However, increasing leverage and weak Spot demand pose risks of heightened volatility.

Azcnews Breaking Bitcoin Nears $100k Amid Rising Usdt Inflows

Bitcoin has surged to $98K, edging closer to the $100K milestone while maintaining its upward momentum over the past two days.

With $450 million in USDT flowing into exchanges in February, the rising stablecoin liquidity signals renewed risk appetite. Historically, BTC price movements have mirrored USDT supply trends. Back in mid-December, when BTC hit $108,000—its then all-time high—the circulating supply of USDT also peaked at $140 billion.

However, a shift in market dynamics saw BTC drop to $91,000, coinciding with a $3 billion decline in USDT supply to $137 billion, indicating risk-off behavior.

Usdt Circulating Supply
Usdt Circulating Supply

Notably, USDT supply has now surged to a fresh record high of $141 billion, accompanied by renewed capital inflows into exchanges. If this liquidity translates into Spot demand, BTC could break past the $100,000 mark.

However, if the majority of this capital fuels leveraged trading rather than actual purchases, it could create a liquidity trap. In such a scenario, prices may rise temporarily but lack solid support, leading to sharp reversals when overleveraged positions unwind.

Since BTC’s last attempt to breach $100,000, the Estimated Leverage Ratio (ELR) has climbed even higher. Meanwhile, BTC inflows into exchanges have outpaced outflows, suggesting weak Spot buying demand. With increasing leverage, BTC faces a higher risk of long liquidations if prices decline.

If leverage continues to rise while Spot demand remains weak, the likelihood of liquidation spikes increases, making BTC price action more volatile in the short term.

Love

0.0/5

Love

Latest

Ethereum’s Key Changes After The Fusaka Upgrade

News | Altcoin | Editor Choice

Ethereum’s Key Changes After the Fusaka Upgrade

The Fusaka upgrade marks a pivotal step in Ethereum’s journey toward large-scale scalability, promising faster transaction speeds, enhanced security, and laying the foundation for the next explosive phase of the world’s leading blockchain.

How To Join The Metamask Airdrop 

Airdrops | Editor Choice

How to Join the MetaMask Airdrop 

Join the Metamask airdrop hunt, the most popular blockchain wallet in crypto is having a 90-day point earning program.

Binance Delists 3 Altcoins, Prices Instantly Swing

News | Altcoin | Editor Choice

Binance Delists 3 Altcoins, Prices Instantly Swing

Binance’s unexpected decision to delist three altcoins — FLM, KDA, and PERP — has sent shockwaves through the crypto market, triggering intense volatility. Yet, in a surprising twist, FLM surged, defying all conventional market logic.

The Pattern Is Repeating, Xrp Predicted To Surge To $15

News | Altcoin | Editor Choice

The Pattern Is Repeating: XRP Predicted to Surge to $15

This wave of optimism follows a strong market rebound after the sharp correction on October 10, reigniting hopes that XRP may be entering a new breakout cycle.

Bitcoin Unlikely To Rally Until The Us–china Deal Is Finalized

News | Bitcoin | Editor Choice

Bitcoin Unlikely to Rally Until the US–China Deal Is Finalized

Bitcoin continues to swing sharply around the $116,000 resistance level as markets hold their breath ahead of two major events: the Federal Reserve’s rate decision and the outcome of the US–China trade negotiations.

Screenshot 2025 10 20 091338