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

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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.

Since Jan 1, the aggregate #stablecoin supply has increased by $20.17B (+10.9%), now reaching more than $205B.

For comparison, the December peak clocked in at $187B but the supply actually contracted in the last two weeks of 2024 and dropped to $185B by January 2025. pic.twitter.com/gQbdMEDisb

— glassnode (@glassnode) March 13, 2025

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.

As of today, the market cap of cryptocurrencies stood at $2.65 trillion. Chart: TradingView

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

Christian Encila

They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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