The cryptography market has struggled to gain momentum in recent weeks, Bitcoin and the main altcoins falling on new lows this cycle. Price action has been far from encouraged, letting many traders wonder if the market has already reached its peak. However, a more in -depth examination of Stablecoin data tells a different story that suggests that the bull cycle is far from over.
Tendencies of the stablescoin offer and market cycles
The data on the chain show an interesting correlation between the Stablescoin market and the bull and bitcoin bear cycles and other cryptocurrencies. This model, identified by The Intotheblock channel analysis platform suggests that the stablecoin offer has historically culminated alongside the main vertices of the market. The relationship implies that an increase in stable supply often indicates the final stages of a bull, with a drop in supply generally coinciding with the start of the lowering conditions.
An overview of previous market cycles reinforces this trend, especially in the case of Bitcoin. In April 2022, the total stablecoin offer reached a summit of $ 187 billion. Shortly after, the offer began to decrease, aligning perfectly on the start of the last bears market. This phase has seen Bitcoin undergo a prolonged slowdown, with downward prices Until they have a background in January 2023. The sharp drop in the stablecoin supply throughout this period reflected a broader change in the feeling of investors, the liquidity that has left the market.
At the time of writing the time of the editorial staff, the stablecoin offer continued to climb despite the price correction of 24% bitcoin compared to its recent summit of all time. Stablecoin’s offer increased to $ 219 billion and continues to climb. This suggests that the market is Still in the mid-cycle cycle phase Rather than approaching your peak.
Picture Of X: Intotheblock
Stablecoins approaching the market capitalization of Ethereum
Another notable observation Regarding the Stablescoin market, despite the recent stagnation of prices on the wider cryptography market, stablecoins still have significant liquidity. In particular, the total stablecoin offer is now at only $ 10 billion in Ethereum market capitalization.
This phenomenon aligns with the recent drop in prices, which has seen many investors leave their positions in Bitcoin and other cryptocurrencies, then convert them in USDT and other stablecoins. However, the fact that these funds remain in the cryptographic industry and have not been released is positive.
Although an increase in the Stablecoin supply reflects an increasing prudence of investors, this also means that a large capital basin is ready to be deployed once market conditions are improving.
Picture Of X: Intotheblock
At the time of writing this document, Bitcoin is negotiated at $ 84,325, Having spent the most In the past 24 hours, negotiating between $ 83,688 and $ 84,504. On the other hand, the cryptography market has experienced a modest increase of 0.3% in the last 24 hours. It is currently at 2.75 billions of dollars, down 25.8% compared to its summit of 3.72 billions of dollars in December 2024.
If the cycle was approaching its end, the story suggests that the stablecoin offer would have already started to decrease. Instead, the upward trend indicates continuous market participation and the potential of the increase.
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