After a quiet month following the Bitcoin halving, a significant increase in stablecoin inflows could be the catalyst for a breakout in Bitcoin's price. CryptoQuant observed a notable spike in stablecoin volume entering the market, with jumps in inflows often corresponding with movements in Bitcoin's price. This surge in liquidity could signal a strong bullish trend, potentially leading to increased price volatility.

Bitcoin's price has been struggling to gain momentum since dropping below its all-time high in April, despite the historic approval of US spot exchange-traded funds (ETFs) earlier this year. However, the recent increase in stablecoin inflows could impact supply and demand dynamics, leading to a potential price increase.

Bitcoin experienced its largest single-day increase in nearly two months this week, surging by almost 8% to $66,400 due to contradicting US economic data. This increase, combined with growing confidence in the asset's value and strong institutional demand, paints a bullish picture for Bitcoin's potential breakout.

Prominent crypto trading firm QCP Capital notes that the bullish momentum turnaround could push Bitcoin towards retesting its previous highs of around $74,000. With major asset managers allocating a significant percentage of their assets under management into spot Bitcoin ETFs, the stage is set for a potential price soar.