Liquidity of stablecoin reaches a record high of 220 billion dollars: Report

The latest weekly report from CryptoQuant shows that the liquidity of stablecoins has reached a new high of 220 billion dollars. This rise is due to the market capitalization of Tether (USDT) and USD Coin (USDC) increasing, driving capital flows into the broader cryptocurrency ecosystem. Price Increase Indicator for BTC According to the report on April 30, the market capitalization of USDT has risen by 2.5 billion USD, while USDC rose by 1.2 billion USD in the past week. In total, both have increased by 3.7 billion USD in market capitalization, marking the strongest weekly growth in stablecoin supply since February 9. In the past 30 days, these numbers have even risen higher. USDT has increased by an additional 5.3 billion while USDC surged by 6 billion during the same period. Both stablecoins are expanding above their 30-day moving averages. Historically, this pattern coincides with periods of increased liquidity and stronger performance in the cryptocurrency market in general. Specifically, this trend is a bullish indicator for Bitcoin (BTC). Market sentiment has also improved with these changes in liquidity. The Bitcoin Bull Score, which tracks investor sentiment and market strength, has risen from 20 weeks ago to 50 this week, with the new score putting the market in neutral territory. According to the analysis company, the increase in the data indicates the impact of rising stablecoin liquidity on Bitcoin’s recent movement beyond key resistance levels on the chain. However, the index remains below 60, a level typically associated with sustained price increases. This leading cryptocurrency has rebounded strongly over the past three weeks, rising more than 25% from its low of under $74,000 on April 9 to over $96,500 at the beginning of May. On the other hand, Bitcoin supporter Robert Breedlove recently pointed out that the average mining cost is a potential indicator that this asset is nearing the beginning stage of a price increase. He noted that this metric, often regarded as the market’s breakeven point, has historically marked the bottom of the cycle and once again suggests that prices may be bottoming out. USDT Declines, USDC Reaches All-Time High on the Exchange Despite reaching record levels, USDT liquidity on cryptocurrency exchanges has not fully recovered. The total amount of digital assets held on exchanges is currently 38 billion USD. This figure is 12% lower than the peak of 43 billion USD on February 21. On the other hand, the USDC balance on exchanges has reached 6.5 billion USD, the highest level since March 2023. The stablecoin reserves on exchanges are crucial as they can be quickly used for trading and investing, helping to support the price action of digital assets.