Money is piling into the crypto market as the rapidly expanding stablecoin supply shows. According to analysts, the expansion of stablecoin supply indicates that the current crypto market pullback is only the middle of the bull cycle. Booming Stablecoin Supply A Bullish Sign For Crypto Bull Cycle Just when some were ready to declare the crypto bull cycle over, a key indicator has flashed green. According to crypto analytics firm IntoTheBlock, historical data shows that stablecoin supply peaks typically align with market cycle tops. The previous peak, at $187 billion, was recorded in April 2022, just before the bear market started. “Now it’s at $219B and still rising, suggesting we’re likely still mid-cycle,” IntoTheBlock wrote in a recent X post. Stablecoins are types of cryptocurrencies designed to hold a steady price, predominantly anchored to the U.S. dollar. They are a popular source of liquidity for crypto trading, acting as “dry powder” to trade assets on exchanges and transfer value on blockchain rails. Notably, European regulations have pushed crypto firms to delist USDT from their platforms. Specifically, the European Union’s Markets in Crypto-Assets (MiCA) framework requires European crypto asset providers to delist USDT and other non-MiCA-compliant tokens. Despite the delisting hurdle, USDT remains the world’s largest stablecoin and the third-biggest digital asset, with a $143.4 billion market cap. Meanwhile, the rising stablecoin supply can suggest imminent buying pressure and increasing investor demand. CoinGecko data shows that Bitcoin sunk to $77,000 earlier this week—its lowest point since early November—before a minor recovery took the asset back to $83,294 at the time of writing . The soaring stablecoin circulation could act as dry powder to fuel a massive crypto market rally in the foreseeable future. Despite the possibility for short-term volatility, investors remain hopeful for the rest of 2025. Analysts at VanEck have predicted that the foremost crypto could hit $180,000 in this cycle.
