Despite a slight pullback after reaching a local high near $98,000, Bitcoin remains firmly above $95,000—this level has previously triggered significant sell-offs. This development reflects a noticeable change in market sentiment: investors now tend to buy on price adjustments rather than selling when prices rise. This momentum is likely due to the substantial inflow of stablecoins into the stablecoin market in the past week, particularly USDT and USDC, which saw total capitalizations increase by $2.5 billion and $1.2 billion respectively.
The stablecoin market welcomes new capital inflows, and Bitcoin maintains its upward trend.
In April, the total market capitalization of stablecoins recorded an astonishing growth of 2.2%, reaching $238 billion, mainly due to strong inflows into the two leading stablecoins, USDT and USDC.
In just the last week of this month, USDT and USDC achieved significant capitalization gains. USDT increased by $2.5 billion, while USDC followed closely with an increase of $1.2 billion.
According to the latest report from CoinDesk, the market capitalization of USDC has risen to $62.1 billion, up 3.07%, while its market share increased to 26%, the highest level since February 2023. Meanwhile, USDT continues to dominate, with a market capitalization growth of 2.26%, reaching $148 billion, marking 20 consecutive months of growth. The market share of USDT slightly increased to 61.9%, accounting for 75.2% of the total trading volume of stablecoins on centralized exchanges.
The increase in stablecoin liquidity is sending a clear signal of capital returning to the cryptocurrency market. History shows that whenever the capitalization of stablecoins expands, Bitcoin prices tend to rise due to improved liquidity conditions and increased avenues for capital acquisition.
In the past 30 days, the market capitalization of USDT and USDC has surpassed the moving average trend line—this indicator is associated with previous Bitcoin bull markets.
With signs of revival in the cryptocurrency market over the past week, Bitcoin has made a strong rebound, approaching $98,000.
Since the last adjustment, long-term holders (LTH) have accumulated approximately 254,000 BTC at an average price of $95,000—this move reflects strong conviction, with almost no signs of hedging from this group.
Short-term investors (Short-Term Holders - STH) holding Bitcoin for over a month have begun to return to profitability. If this trend continues, selling pressure from the 'old' STH group may decrease, potentially opening up a new growth cycle.
