The stablecoin market cap has recently flipped positive. This could be bullish for Bitcoin.
CryptoQuant's CEO, Ki Young Ju, highlighted this trend on X. The stablecoin market cap just hit a new all-time high.
USDT's 30-day change had turned negative earlier. But it didn't stay down for long.
The metric has now edged back into positive territory. It's a small increase, but it could signal a turnaround.
Historically, rising stablecoin market caps have been good for Bitcoin. Ju's chart shows this pattern over the past year.
Why do stablecoins matter for Bitcoin? It's all about their role in the market.
Investors use these tokens to park cash. They avoid crypto volatility but stay ready to jump back in.
So, stablecoin market cap can show potential Bitcoin buying power. When it goes up, there's more dry powder for BTC and others.
This Tether uptick comes as Bitcoin itself is rallying. It suggests fresh capital inflows, not just rotation from BTC.
That's a potent combo. It means there's capital waiting on the sidelines and direct inflows into Bitcoin.
Tether now makes up about 70% of the total stablecoin market cap. That's a big chunk of the pie.
The total stablecoin market cap has hit a new record. It's a sign of renewed investor interest.
What's next? Keep an eye on these trends. They could signal more upside for Bitcoin and the broader crypto market.
Remember, though: crypto's a wild ride. Don't bet the farm on any one indicator.