$BTC

Bitcoin Investors Watching Closely

A growing stablecoin supply is often seen as a bullish sign for Bitcoin. Historically, the price of Bitcoin has risen in line with the stablecoin count. The reasoning is simple: more stablecoins mean more potential capital just waiting to be entered into the market.

Some analysts believe this fresh injection could push Bitcoin higher. However, not all stablecoins are used for trading. Many are held for remittances, payments, or as a hedge against inflation, especially in countries where local currencies are unstable.

This could point to one of two possibilities: either stablecoins are being used more often outside of exchanges or investors are still waiting for the suitable moment. Should the latter prove right, the impact on Bitcoin could be less notable than expected.