According to data, the stablecoins USDT and USDC have been seeing some serious capital inflows lately. Could this be a sign of bullish momentum for Bitcoin?
Top 2 Stablecoins Are Having a Moment 🎉
In a recent post on X, on-chain analytics firm Santiment discussed the latest trend in the market caps of the top two stablecoins: USDT and USDC. Check out the chart they shared, showing the 30-day change in the market caps of these two cryptocurrencies:
As you can see, the 30-day percentage change in the market cap of USDC has spiked to sharp positive levels recently, implying that the stablecoin has been growing at a rapid rate. Meanwhile, USDT kicked off the year 2025 with its 30-day market cap change dipping into the negative territory. But don’t worry, it’s back on track with a green indicator.
So, both of the stablecoin giants are currently enjoying an increase in their market caps. Historically, growth in these fiat-tied tokens has been bullish for Bitcoin and other volatile cryptocurrencies. Why? Because investors who store their capital in the form of stablecoins usually plan to invest into the volatile side of the market eventually.
The most bullish scenario for the sector occurs when both Bitcoin and the stablecoins witness a rise in their market caps. This means both sides of the market are getting net capital inflows. When only one rises while the other goes down, it means capital is merely seeing a rotation between the two.
The recent inflows into USDT and USDC have come while BTC has been consolidating sideways. This suggests the capital entering into the stables is fresh, as BTC would have gone down if it was otherwise. At the same time, BTC itself isn’t seeing any direct inflows, hence the flat price action.
Usually, stablecoin holders deposit to centralized exchanges when they want to purchase the volatile cryptocurrencies. So, the number of stable deposits into these platforms can tell us about whether large-scaling buying of this type is happening or not.
An analyst has shared the data for the metric in a CryptoQuant Quicktake post:
From the above chart, it’s apparent that the indicator is following a flat trajectory right now. An increase in it, like the one witnessed earlier, may provide fuel for a further rally for Bitcoin.
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2025-02-01 06:41