Stablecoins Growing Again: Why This Can Be Bullish For Bitcoin

On-chain data shows that the stablecoin market cap has recently returned to positive growth, which could be bullish for Bitcoin.

Stablecoin Market Cap Flips to Positive Growth

According to CryptoQuant founder Ki Young Ju, the stablecoin market cap has reached a new all-time high, signaling a renewed uptrend. A recent chart shows the 30-day percentage change in the market cap of Tether (USDT) flipping back into positive territory after a period of decline.

Historically, a rising stablecoin market cap has been bullish for Bitcoin. Investors use stablecoins to avoid volatility, representing potential buying power for Bitcoin. The recent increase in Tether’s market cap and Bitcoin’s sharp recovery suggest fresh capital inflows into BTC rather than just a rotation from stablecoins.

This combination indicates that capital is both sitting on the sidelines ready to enter the market and flowing into Bitcoin, potentially signaling a bullish trend.
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