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 value has since returned above the $100,000 degree, transferring largely sideways to shut the week.
In response to a current 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 value 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 big enhance for the reason that US Presidential election in November 2024. Liquidity in crypto is measured by the full worth of circulating stablecoins, which lately reached a brand new all-time excessive.
In response to knowledge from CryptoQuant, the market capitalization of dollar-backed stablecoins surpassed the $200 billion mark final week and is at present at $204 billion, a document excessive. This worth represents an over 22% growth since Donald Trump’s victory within the US elections.
One main contributor to this progress is Tether’s USDT, which accounts for almost 70% of the USD-denominated stablecoin market. USDT’s market cap at present stands at round $139 million, reflecting a 15% enhance since November final yr.
Supply: CryptoQuant
Apparently, this growth has been mirrored within the stablecoin balances of centralized exchanges, with the full 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 up to now three months, representing a 41% enhance.
Greenback-backed stablecoins are an vital supply of liquidity for buying and selling on centralized exchanges. Therefore, an growth within the stablecoin supply of exchanges implies a rise within the shopping for energy of crypto traders.
“The subsequent leg up for Bitcoin and crypto costs could possibly be across the nook, because the stablecoin liquidity impulse begins to broaden 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% firstly of 2025. An additional acceleration usually drives crypto costs larger. In the meantime, USDC’s liquidity impulse is increasing by 20%, its quickest tempo in a minimum of a yr.
Bitcoin Value At A Look
As of this writing, Bitcoin is valued at round $102,400, reflecting an nearly 2% decline up to now 24 hours.
The value of BTC on the each day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView