Despite a slight pullback after touching a local high near $98,000, Bitcoin remains solidly above $95,000 - a level that has previously triggered significant sell-offs. This development reflects a notable shift in market sentiment: investors are now inclined to buy during price corrections rather than sell during price increases. This momentum is likely due to substantial stablecoin inflows into the stablecoin market over the past week, particularly USDT and USDC, with their total capitalization increasing by $2.5 billion and $1.2 billion, respectively.
VX: TZ7971
Stablecoin Market Welcomes New Capital Inflows, Bitcoin Maintains Upward Trend
In April, the total stablecoin market capitalization recorded an impressive 2.2% growth, reaching $238 billion, primarily due to strong inflows into the two leading stablecoins, USDT and USDC.
In the last week of this month alone, USDT and USDC achieved significant capitalization gains. USDT increased by $2.5 billion, with USDC following closely behind, increasing by $1.2 billion.
According to the latest CoinDesk report, USDC's market capitalization has risen to $62.1 billion, up 3.07%, while its market share has increased to 26%, the highest since February 2023. Meanwhile, USDT continues to maintain its dominance, with market capitalization growing 2.26% to $148 billion, marking 20 consecutive months of growth. USDT's market share slightly increased to 61.9%, accounting for 75.2% of total stablecoin trading volume on centralized exchanges.
The increase in stablecoin liquidity is sending a clear signal of capital returning to the cryptocurrency market. Historically, whenever stablecoin capitalization expands, Bitcoin prices tend to rise due to improved liquidity conditions and increased capital access channels.
Over the past 30 days, the market capitalization of USDT and USDC has expanded beyond the moving average trend line - an indicator associated with previous Bitcoin bull markets.
As the cryptocurrency market shows signs of recovery over the past week, Bitcoin has strongly rebounded, approaching $98,000.
Since the last adjustment, Long-Term Holders (LTH) have accumulated approximately 254,000 BTC at an average price of $95,000 - a move reflecting strong conviction with almost no hedging from this group.
Short-Term Holders (STH) who have held Bitcoin for over a month have begun to return to a profitable state. If this trend is maintained, selling pressure from the "old" STH group may decrease, potentially opening a new growth cycle.
