Bitrabo Editorial
Analysis of on-chain data indicates a recent upsurge in the stablecoin market cap, which could bode well for Bitcoin.
Turning Point: Stablecoin Market Cap Shows Growth
According to insights from CryptoQuant’s CEO Ki Young Ju, shared in a recent post on X, the stablecoin market cap has reached an all-time high, signaling a renewed uptrend.
The chart provided by Young Ju illustrates the 30-day percentage change in the market cap of the largest stablecoin, Tether (USDT), over the past year:
Initially declining, the 30-day percentage change for USDT has recently turned positive, indicating a potential shift towards growth. This trend reversal historically has been seen as a positive indicator for Bitcoin.
Stablecoins are often used by investors to safeguard their funds from cryptocurrency price fluctuations, with the intention of re-entering the volatile market. Hence, an increase in stablecoin market cap represents increased buying potential for assets like Bitcoin.
The recent upswing in Tether’s market cap coincides with Bitcoin’s significant price recovery, suggesting fresh capital inflows rather than a mere reshuffling of funds from Bitcoin.
With Tether now constituting approximately 70% of the total stablecoin market cap, a notable surge in capital inflows has propelled the overall market cap to new highs.
Bitcoin’s Price Movement
As of the latest data, Bitcoin is trading at approximately $63,700, reflecting a more than 10% increase over the past week.