The crypto and US equities markets began the week on the worst attainable notice, reacting negatively to the launch of the Chinese language AI platform DeepSeek. Regardless of the preliminary downturn, the Bitcoin worth has since returned above the $100,000 degree, transferring largely sideways to shut the week.
Based on a latest on-chain report, liquidity on centralized exchanges has reached a brand new document excessive, suggesting that crypto bulls now have elevated shopping for energy. The query is — can this contemporary shopping for energy push the Bitcoin worth to a brand new excessive?
Influence Of Rising Stablecoins On Crypto Costs
In its newest weekly report, blockchain intelligence agency CryptoQuant revealed liquidity within the crypto market has skilled a major enhance for the reason that US Presidential election in November 2024. Liquidity in crypto is measured by the whole worth of circulating stablecoins, which lately reached a brand new all-time excessive.
Based on information from CryptoQuant, the market capitalization of dollar-backed stablecoins surpassed the $200 billion mark final week and is presently at $204 billion, a document excessive. This worth represents an over 22% enlargement since Donald Trump’s victory within the US elections.
One main contributor to this development is Tether’s USDT, which accounts for almost 70% of the USD-denominated stablecoin market. USDT’s market cap presently stands at round $139 million, reflecting a 15% enhance since November final yr.
Supply: CryptoQuant
Curiously, this enlargement has been mirrored within the stablecoin balances of centralized exchanges, with the whole quantity of USDT on these buying and selling platforms now at document ranges. CryptoQuant revealed that the market cap of USDT on centralized crypto exchanges has elevated from $30.5 billion to $43 billion prior to now three months, representing a 41% enhance.
Greenback-backed stablecoins are an necessary supply of liquidity for buying and selling on centralized exchanges. Therefore, an enlargement within the stablecoin provide of exchanges implies a rise within the shopping for energy of crypto buyers.
“The subsequent leg up for Bitcoin and crypto costs could possibly be across the nook, because the stablecoin liquidity impulse begins to develop once more,” CryptoQuant famous. Furthermore, a rising stablecoin market cap — particularly on centralized exchanges — is traditionally correlated with larger Bitcoin costs.
CryptoQuant added:
USDT’s liquidity impulse (30-day % change in market capitalization) is now barely optimistic after contracting by 2% at first of 2025. An additional acceleration sometimes drives crypto costs larger. In the meantime, USDC’s liquidity impulse is increasing by 20%, its quickest tempo in not less than a yr.
Bitcoin Worth At A Look
As of this writing, Bitcoin is valued at round $102,400, reflecting an virtually 2% decline prior to now 24 hours.
The value of BTC on the every day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
