By
Bena Ilyas
April 25th, 2024
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. Bitcoin price is now headed to retest its all-time high around $61,711.87 recorded 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. Notably, most digital assets led by Bitcoin experience heightened volatility of up to 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. With Visa on board the crypto market, the liquidity is set to spike thus providing more fuel for the ongoing bull rally.
“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. The market capitalization has now topped $1 trillion while the trading volume was around $55 billion. Notably, the total crypto market capitalization is approximately $1.85 trillion, whereby Bitcoin has a dominance of around 583% followed by Ethereum with 11%.
Bitcoin price breakout on Monday was also largely attributed to the options expiration last week that saw the downward pressure diminished. 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. “That does not mean the market will move to $44,000 by the end of this week, but it does imply that after Friday this potential downward pressure no longer exists.”
From a technical point of view, Bitcoin price has made a strong support level to be referenced 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.