FameEX Hot Topics | Rising $219B Stablecoin Supply Indicates Ongoing Mid-Bull Cycle, Not Market Peak

The recent correction in the crypto market is being viewed not as the end of the bull cycle, but rather as a normal mid-cycle pause, according to analysts. One of the most compelling indicators supporting this outlook is the steady rise in stablecoin supply. Since stablecoins are commonly used as a gateway for fiat money to enter the crypto space, their growth is often interpreted as a sign of increasing investor interest and fresh capital entering the market.

Currently, the total stablecoin supply has exceeded $219 billion, marking a new all-time high. This surge is significant because it suggests that the market is still in a bullish phase. Historically, peaks in stablecoin supply have aligned with crypto market tops. For example, in April 2022, the supply reached $187 billion, right before the bear market began. The fact that the supply is now higher and still growing points to further upside potential for the market.

Rising stablecoin inflows to exchanges are also seen as a bullish signal. They often precede buying pressure and indicate that investors are preparing to re-enter or increase exposure to crypto assets. Still, caution persists in the short term as markets remain sensitive to macroeconomic developments, particularly ahead of the U.S. Federal Open Market Committee (FOMC) meeting this week.

According to Stella Zlatareva, dispatch editor at Nexo, crypto is currently moving in sync with broader financial markets. Bitcoin’s price action, reflecting that of the S&P 500, shows that traders are awaiting clearer direction from key economic data such as U.S. retail sales and the FOMC’s interest rate outlook.

Despite the current uncertainty, long-term confidence remains strong. Asset manager VanEck has forecasted that Bitcoin could hit $180,000 by the end of 2025, suggesting that the present market dip may simply be a stepping stone in a longer-term upward trend.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.