The crypto and US equities markets began the week on the worst potential observe, reacting negatively to the launch of the Chinese AI platform DeepSeek. Despite the preliminary downturn, the Bitcoin value has since returned above the $100,000 stage, shifting largely sideways to shut the week.
According to a latest on-chain report, liquidity on centralized exchanges has reached a brand new report excessive, suggesting that crypto bulls now have elevated shopping for energy. The query is — can this recent shopping for energy push the Bitcoin value to a brand new excessive?
Impact Of Growing Stablecoins On Crypto Prices
In its newest weekly report, blockchain intelligence agency CryptoQuant revealed liquidity within the crypto market has skilled a major enhance because the US Presidential election in November 2024. Liquidity in crypto is measured by the full worth of circulating stablecoins, which just lately reached a brand new all-time excessive.
According to information from CryptoQuant, the market capitalization of dollar-backed stablecoins surpassed the $200 billion mark final week and is at the moment at $204 billion, a report excessive. This worth represents an over 22% growth 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 at the moment stands at round $139 million, reflecting a 15% enhance since November final 12 months.
Source: CryptoQuant
Interestingly, 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 report 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.
Dollar-backed stablecoins are an vital supply of liquidity for buying and selling on centralized exchanges. Hence, an growth within the stablecoin supply of exchanges implies a rise within the shopping for energy of crypto buyers.
“The next leg up for Bitcoin and crypto prices could be around the corner, as the stablecoin liquidity impulse starts to expand again,” CryptoQuant famous. Moreover, 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 sometimes drives crypto costs larger. Meanwhile, USDC’s liquidity impulse is increasing by 20%, its quickest tempo in at the very least a 12 months.
Bitcoin Price At A Glance
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 | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
