Stablecoins are like the blood of the coin market, especially during upward market cycles, as their increasing marketcap fuels rallies indeed.

However, an increase in stablecoin marketcap alone will not cause the coin market to rise. Rather, there must be net flows of stablecoins into exchanges for the market to rise.

Interestingly, in Sept, there was a high correlation between BTC price and stablecoin's exchange net flows, especially around the 10th and end of September, when its net inflows of stablecoins were positive for several days, contributing to the price rise.

Therefore, I believe that the net inflows of stablecoins can be a good predictor of the future price of BTC for now.

Written by SignalQuant