Market analysts believe that the recent correction in the crypto market does not mean that the bull market cycle has ended, but is only a benign correction in the middle of the bull market. The key indicator supporting this view is that the total supply of stablecoins is steadily increasing. Stablecoins are the main entry point for fiat funds to enter the crypto ecosystem, and the increase in their supply usually means that investor interest is increasing and the speed of capital inflow is accelerating.
Data shows that the current total supply of stablecoins has exceeded US$219 billion, a record high. This milestone data indicates that the crypto market may still be in the middle of a bull market. Historically, the highest point in the supply of stablecoins often coincides with the top of the cycle. IntoTheBlock pointed out that when the supply of stablecoins reached a peak of US$187 billion in April 2022, it was the beginning of the last round of bull-bear conversion. In contrast, the supply of stablecoins is still growing today, suggesting that the crypto market still has the potential to rise further.
On the other hand, the inflow of stablecoins into exchanges is growing rapidly, which is often seen as a precursor to increased buying pressure, indicating that investors are pouring money into the market. Although this signal is positive, short-term market sentiment remains cautious, and investors may be waiting for major economic news that will affect the performance of risky assets.
These news include the upcoming Federal Open Market Committee (FOMC) meeting of the Federal Reserve this week. Analysts pointed out that the development of the crypto market reflects the broader macroeconomic trend. The current Bitcoin price is below a key technical level similar to the S&P 500 index. Traders are closely watching US retail sales data and FOMC meetings to determine the future direction of interest rate policy.
Although macroeconomic uncertainty may bring short-term fluctuations, investors’ long-term sentiment remains bullish. Investment company VanEck predicts that the price of Bitcoin is likely to reach $180,000 by the end of 2025, which further strengthens investors’ confidence that the current pullback is just a transition in a larger upward trend.
