The price of Bitcoin broke past $49,000 to achieve a new all-time high across major exchanges.
The price of Bitcoin (BTC) achieved a new record above $49,000 on Valentine’s Day on Feb. 14, rising to as high as $49,344 on Coinbase.There are three main reasons Bitcoin surged to a new all-time high, namel high stablecoin inflows, clean break of the $38,000 resistance area, and a prolonged consolidation phase.BTC/USD 4-hour price chart (Coinbase). Source: TradingView.comHigh stablecoin inflows were keyThroughout the past several days, despite Bitcoin’s consolidation below $38,000, on-chain analysts pinpointed the continuous increase in stablecoin inflows.According to data from CryptoQuant, a data analytics platform, the Stablecoin Supply Ratio (SSR) rose significantly as it rallied from the mid-$30,000 region.The SSR indicator shows the ratio of the market cap of Bitcoin relative to the aggregated market cap of stablecoins.When the price of Bitcoin rises in tandem with the SSR ratio, then it means it is likely being driven by sidelined capital re-entering the market.Stablecoin Supply Ratio. Source: CryptoQuantThis trend is highly optimistic because it shows that the rally was not just driven by an over-leveraged futures market. In fact, it was genuine demand from the spot market that led the uptrend.Atop the high stablecoin ratio, analysts also pinpointed the decline in selling pressure coming from miners. What is …
