GET 10% OFF ON YOUR FIRST ORDER. FOR A LIMITED TIME ONLY. Use code: WELCOME on checkout

Stablecoins Supply Up By $20 Billion – The Key To Bitcoin’s Next Move?

Early in 2025, there was a significant surge in the stablecoin market, with a $20 billion increase in total supply. With a 10% increase from January, the total supply now stands at almost $205 billion. The spike, according to data from Glassnode, comes after a dip in late 2024, when the supply of stablecoins fell from $187 billion to $185 billion.

Stablecoins See A Strong Rebound

For trading cryptocurrencies, stablecoins—like USDT and USDC—often act as a reserve for investors expecting the right time to buy assets like Bitcoin. The most recent rise shows that investor interest has surged, especially in view of last year’s slow down.

Given the previous fall, this comeback is especially notable. For most of 2024 the market has been losing stablecoins; but, this trend has lately reversed. Although past patterns suggest that Bitcoin’s price may be impacted, it is unknown whether this increase will lead to a rise in purchases of cryptocurrencies.

Bitcoin Investors Watching Closely

A growing stablecoin supply is often seen as a bullish sign for Bitcoin. Historically, the price of Bitcoin has risen in line with the stablecoin count. The reasoning is simple: more stablecoins mean more potential capital just waiting to be entered into the market.

Some analysts believe this fresh injection could push Bitcoin higher. However, not all stablecoins are used for trading. Many are held for remittances, payments, or as a hedge against inflation, especially in countries where local currencies are unstable.

Stablecoin Exchange Holdings Drop 21%

While the total supply is rising, only 21% of stablecoins are currently sitting on exchanges. This is a significant drop from 2021, when over 50% of the supply was available for immediate trading, Glassnode disclosed. This shift suggests that while new coins are being issued, they are not all being deployed into crypto markets right away.

This could point to one of two possibilities: either stablecoins are being used more often outside of exchanges or investors are still waiting for the suitable moment. Should the latter prove right, the impact on Bitcoin could be less notable than expected.

What This Means For Bitcoin’s Future

The stablecoin market is currently experiencing a resurgence, which is generally a favorable development for the cryptocurrency sector. However, it is uncertain whether this will result in a short-term increase in the price of Bitcoin. Stablecoin utilization has fluctuated, and additional economic variables will contribute to this development.

At the time of writing, Bitcoin was trading at 82,264, down 1.1% and 6.9% in the daily and weekly frames.

Featured image from Warwick Business School, chart from TradingView

Latest Press

post-thumbnail
News
15 minutes ago
BYDFi Launches Contract Copy Trading Leader Participation Program with Up to 30% Profit Sharing
The post BYDFi Launches Contract Copy Trading Leader Participation Program with Up to 30% Profit Sha...
READ MORE
post-thumbnail
News
15 minutes ago
Interpol Hunts Hayden Davis as WOLF and LIBRA Scams Leave Investors $40M in Ruins!
The post Interpol Hunts Hayden Davis as WOLF and LIBRA Scams Leave Investors $40M in Ruins! appeared...
READ MORE
post-thumbnail
News
15 minutes ago
North Korea’s $1.14 Billion Bitcoin Stash Puts It Among the Top 3 Government Holders
The post North Korea’s $1.14 Billion Bitcoin Stash Puts It Among the Top 3 Government Holders appe...
READ MORE
post-thumbnail
News
15 minutes ago
Pakistan Launches Crypto Council to Regulate Blockchain and Digital Finance
The post Pakistan Launches Crypto Council to Regulate Blockchain and Digital Finance appeared first ...
READ MORE
post-thumbnail
News
15 minutes ago
Trump’s Bitcoin Reserve Plan Backfires: European Central Bank Warns of Crypto Market Crash
The post Trump’s Bitcoin Reserve Plan Backfires: European Central Bank Warns of Crypto Market Cras...
READ MORE
post-thumbnail
News
15 minutes ago
Ripple Lawsuit News: Ex-SEC Lawyer Says There is No Such Thing As ‘Private Settlement’
The post Ripple Lawsuit News: Ex-SEC Lawyer Says There is No Such Thing As ‘Private Settlement’ ...
READ MORE
post-thumbnail
News
15 minutes ago
XRP Price Prediction For March 17
The post XRP Price Prediction For March 17 appeared first on Coinpedia Fintech News XRP is showing a...
READ MORE
post-thumbnail
News
15 minutes ago
Crypto News: Bank of Korea Rejects Bitcoin for Foreign Exchange Reserves
The post Crypto News: Bank of Korea Rejects Bitcoin for Foreign Exchange Reserves appeared first on ...
READ MORE
post-thumbnail
News
15 minutes ago
Ripple News Today: XRP Proposal Aims to Unlock $1.5 Trillion for Bitcoin Reserves
The post Ripple News Today: XRP Proposal Aims to Unlock $1.5 Trillion for Bitcoin Reserves appeared ...
READ MORE
post-thumbnail
News
15 minutes ago
Will Shiba Inu Reach $1 in 2025? Not a Chance, But This Token Will Do It in Under 2 Months 
The post Will Shiba Inu Reach $1 in 2025? Not a Chance, But This Token Will Do It in Under 2 Months�...
READ MORE

Publish an article now

Unlock the power of media for instant visibility to the target audience, major SEO boost, greater website traffic and conversion rates.

click here to get started