Markus Thielen: Stablecoins Could Play Key Role in Next Bitcoin Rally

According to Markus Thielen, a researcher at 10x Market, an increase in stablecoin issuance could be the catalyst for the next surge in Bitcoin.

He pointed out that $2.8 billion was recently issued by stablecoin providers Tether and Circle, indicating potential fresh capital from institutional investors entering the crypto market.

Thielen believes that if this trend of stablecoin issuance continues, it could result in upward momentum for Bitcoin prices.

However, he also noted that for Bitcoin to break above the $60,000 to $61,000 resistance zone, a lower Consumer Price Index (CPI) on its own would not be enough.

The upcoming CPI report for July, a key measure of inflation in the US, is due on Aug. 14.

While it may have an impact on Bitcoin’s price, Thielen suggests that a sustained rally would likely require “real money buying through stablecoins,” indicating that institutional investors would need to actively invest in the market to drive prices higher.