$BTC｜Would banks paying a little more interest on deposits rewrite stablecoin growth expectations?
According to CoinDesk, a working paper by the Bank for International Settlements found that a 1-basis-point increase in U.S. bank deposit rates corresponds to a drop in the projected increase in stablecoins over the next ten weeks, from 15% to 12%. This is a projected relationship discussed in a study, not proof that banks raising rates will necessarily curb stablecoin growth.
The report brings interest on bank deposits into the discussion of stablecoin growth: if banks pay depositors more interest, expectations for continued stablecoin expansion may need to be adjusted. But the study examines stablecoin growth, and the material gives no direct link between that and Bitcoin’s price. It therefore cannot be used to determine whether BTCUSDT will rise or fall.
For trading expectations, what may be worth reassessing is the pace of stablecoin growth, rather than drawing direct conclusions about buying or selling Bitcoin. The most informative variables to watch going forward are whether U.S. bank deposit rates change and whether actual stablecoin growth follows the relationship described in the paper.
Source: CoinDesk｜Related market: Perpetual futures
Two possible price scenarios:
If the 15-minute candle closes above 82050, consider going long after a pullback holds at that level; entry at that level, stop-loss 81948.97, target 82252.06.
If the candle closes below 81555, consider going short if a rebound is rejected at that level; stop-loss 81656.03, target 81352.94.
#CryptoNews
According to CoinDesk, a working paper by the Bank for International Settlements found that a 1-basis-point increase in U.S. bank deposit rates corresponds to a drop in the projected increase in stablecoins over the next ten weeks, from 15% to 12%. This is a projected relationship discussed in a study, not proof that banks raising rates will necessarily curb stablecoin growth.
The report brings interest on bank deposits into the discussion of stablecoin growth: if banks pay depositors more interest, expectations for continued stablecoin expansion may need to be adjusted. But the study examines stablecoin growth, and the material gives no direct link between that and Bitcoin’s price. It therefore cannot be used to determine whether BTCUSDT will rise or fall.
For trading expectations, what may be worth reassessing is the pace of stablecoin growth, rather than drawing direct conclusions about buying or selling Bitcoin. The most informative variables to watch going forward are whether U.S. bank deposit rates change and whether actual stablecoin growth follows the relationship described in the paper.
Source: CoinDesk｜Related market: Perpetual futures
Two possible price scenarios:
If the 15-minute candle closes above 82050, consider going long after a pullback holds at that level; entry at that level, stop-loss 81948.97, target 82252.06.
If the candle closes below 81555, consider going short if a rebound is rejected at that level; stop-loss 81656.03, target 81352.94.
#CryptoNews