Bitcoin price is highly correlated with the stablecoin market, thus making Visa Inc’s USDC incorporation key to the future of the crypto industry.
After almost two months of consolidation, Bitcoin price may be headed to a new all-time high after breaking out on Monday. The Bitcoin breakout coincided with news from payment giant platform Visa Inc (NYSE: V) that it will allow the use of the stablecoin USDC to settle transactions on its payment network.
Bitcoin was trading around $58,016.11 having jumped approximately 4.2% in the past 24 hours according to market data provided by CoinGecko.In the coming days, Bitcoin prices are expected to retest the all-time high reached just 16 days ago.
Bitcoin Price and Visa Latest Crypto Entry
Bitcoin price is highly correlated with the stablecoin market, thus making Visa’s USDC incorporation key to the future of the crypto industry.Bitcoin, in particular, experiences heightened volatility, averaging double digits per day.In times of a downtrend, traders use stablecoins to mitigate risks. Consequently, the demand for stablecoins increased sharply with increased crypto volatility.
Similarly, whenever the crypto market is on the rise, stablecoin plays a vital role in providing liquidity.Due to Visa entering the crypto market, the liquidity is set to spike, which will further strengthen the bull market.
“We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers,” Cuy Sheffield, head of the crypto at Visa, said.
Bitcoin price is now up approximately 829%, and 24% in the last twelve months and 30 days according to CoinGecko analytics.While the trading volume around $55 billion, the market capitalization has now reached over $1 trillion.Notably, the total crypto market capitalization is approximately $1.85 trillion, whereby Bitcoin has a dominance of around 583% followed by Ethereum with 11%.
This is largely attributed to the options expiration last week which reduced the downward pressure on bitcoin prices.At the tail end of last week, Bitcoin options contracts worth $6 billion expired.
“Max pain for the March 26 expiry is currently $44,000 on Deribit,” Luuk Strijers, CCO of Deribit, the world’s largest crypto options exchange by trading volumes and open positions, told CoinDesk.However, that does not mean the market will rise to $44,000 by the end of the week, but it implies that the downward pressure will cease after Friday.
From a technical point of view, Bitcoin prices have made a strong support level that can be used in future trades.If the asset manages to break out of the prior all-time high, the past two weeks’ correction will be viewed as a major support level.next Altcoin News, Bitcoin News, Cryptocurrency news, FinTech News, News
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