The market capitalization of "digital dollars" has reached an all-time high of $190 billion, marking a new ATH.

This milestone strengthens the bullish outlook for Bitcoin (BTC), which recently came close to surpassing the $100,000 mark.

Historically, a correlation has been observed between the growth of stablecoin market capitalization and the performance of BTC and other cryptocurrencies. Investors often acquire stablecoins to shield their capital from volatility while waiting for the right moment to invest in Bitcoin or other digital assets.

This suggests there is a larger amount of liquidity ready to enter the BTC and broader crypto market, potentially serving as a catalyst for further price increases.

According to DefiLlama data, stablecoin market capitalization grew by 46% between January 1 and November 27, 2024, highlighting increasing investor confidence in these assets.