Bitcoin price now depends on stablecoins more than retail demand, says MEXC COO

Tracy Jin of Mexc predicts that $ 1 billion in stablecoin admissions could increase the price of bitcoin by 8 to 10%.

Bitcoin (BTC) More and more benefit from the growth of liquidity based on Stablescoin. On Wednesday April 30, Tracy Jin, COO of Crypto Exchange Mexc, shared his ideas with crypto.News on the growing role of stablecoins in the Bitcoin ecosystem.

“Fiat entries converted into attachment and a circle regularly flow into Bitcoin, and this remains the main engine of its price growth this year. At present, each additional billion of Stablecoins tends to push Bitcoin from 8 to 10%,” said Tracy Jin of Mexc.

Jin explained that despite macroeconomic uncertainty, the demand for stablecoins remains high. Total Stablecoin market capitalization has increased by more than $ 38 billion for the start of the year and should continue to increase. This additional liquidity, in turn, supports an increase in Bitcoin demand.

“Despite the recent landscape of the volatile market, the demand for Stablecoin has remained resilient, increasing more than $ 38 billion for the start of the year. Stablescoins now represent 1% of the USD global money mass, dealing with more than 33 T $ in volume in the past year, including 2.8 T $ in the last month. ”

The stablecoins could be worth 2 dollars billions by 2026

One of the main engines of this growth is the role that stablecoins play in filling the traditional financial markets and the cryptographic ecosystem. They are particularly vital for cryptographic investors, especially during increased volatility periods. According to Jin, this utility could help to propel the market capitalization of the stable to more than 2 dollars of dollars by 2026.

“With many banks and sovereign companies exploring the emission of Stablecoin, in particular in other fiduciary currencies, and governments hierarchire the clarity of the regulation, the market capitalization of the stables could exceed 2 dollars of dollars by 2026 while they continue to stimulate the evolution of financial services, serving as a coverage against volatility and a launch for the deployment of capital, deployment.

This would be an increase of 200% compared to its current level of $ 241 billion. For Bitcoin, this results in a significant increase in available liquidity, probably exerting upward pressure on its price.