- Stablecoin reserves are increasing across exchanges
- Bitcoin supply on exchanges is hitting multi-year lows
- These liquidity signals point to a potential rally toward $124K
Recent on-chain data shows a significant rise in stablecoin reserves across crypto exchanges. This often signals strong buying potential, as traders load up on stable assets like USDT and USDC in anticipation of entering the market . Historically, rising stablecoin balances have preceded bullish moves in Bitcoin , as they represent dry powder ready to be deployed into BTC and other digital assets.
The timing of this trend is important. It comes as Bitcoin consolidates around the $35K to $38K range, with many traders watching for a breakout above resistance levels. If the capital sitting in stablecoins starts flowing into Bitcoin, the price could see rapid acceleration.
Bitcoin Supply on Exchanges Hits Multi-Year Lows
At the same time, Bitcoin’s available supply on exchanges is shrinking. Fewer BTC tokens on trading platforms means less selling pressure, a key ingredient in bullish momentum. As more holders move their coins to cold storage or long-term holdings, supply tightens, creating the perfect storm for a price surge.
This supply squeeze, combined with increasing demand potential from rising stablecoin reserves, presents a strong liquidity setup. These dual factors—lower BTC supply and higher buying power—often precede significant price movements.
$124K: A Realistic Target?
With Bitcoin halving on the horizon and macroeconomic conditions shifting, analysts are speculating whether $124K could be the next major price milestone. While no price target is guaranteed, these liquidity patterns are historically associated with strong uptrends.
The market is watching closely. If stablecoins start flowing into Bitcoin and supply continues to dwindle, BTC may be preparing for its next big move—and $124K might not be as far-fetched as it seems.
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