Although there was a slight adjustment after hitting a local peak near $98,000, Bitcoin still steadfastly maintained above the $95,000 threshold — a level that previously triggered strong sell-offs. This movement reflects a clear shift in market sentiment: instead of selling when prices rise, investors now tend to take advantage of dips to buy in. This momentum is likely driven by stable inflows into the stablecoin market over the past week, particularly USDT and USDC, with increases of $2.5 billion and $1.2 billion in total market cap, respectively.
BTC/USDT chart on a 4-hour timeframe | Source: TradingView
Bitcoin maintains its upward momentum as the stablecoin market sees new inflows.
The total market capitalization of stablecoins recorded an impressive increase of 2.2% in April, reaching $238 billion, primarily due to strong inflows into the top two stablecoins: USDT and USDC.
In the last week of the month alone, USDT and USDC witnessed significant increases in market cap. USDT added $2.5 billion, while USDC also performed well with an increase of $1.2 billion.
The market cap of USDC has risen to $62.1 billion, up 3.07%, increasing its market share to 26% — the highest level since February 2023, according to the latest report from CoinDesk. Meanwhile, USDT continues to assert its dominance with a market cap increase of 2.26%, reaching $148 billion, marking the 20th consecutive month of growth. USDT's market share slightly increased to 61.9%, accounting for up to 75.2% of the total trading volume of stablecoins on centralized exchanges.
The increased liquidity from stablecoins is sending a clear signal of capital returning to the cryptocurrency market. History shows that whenever the stablecoin market cap expands, Bitcoin prices tend to rise due to improved liquidity conditions and increased capital accessibility.
"The expansion of USDT and USDC market capitalization over the past 30 days has exceeded the average trend line — an indicator that has often been associated with Bitcoin price rallies in the past," CryptoQuant noted in a report released on Friday.
Source: CryptoQuant
Bitcoin has surged strongly, approaching $98,000 amid signs of recovery in the cryptocurrency market over the past week.
According to data from Glassnode, long-term holders (LTH) have accumulated approximately 254,000 BTC at an average price of $95,000 since the last correction — a move that reflects strong confidence and almost no signs of risk aversion from this group.
Notably, Glassnode also indicated that short-term holders (STH) who have held Bitcoin for more than a month have begun to return to a profit position. If this trend continues, selling pressure from the "older" STH group could diminish, opening up the possibility of marking the beginning of a new growth cycle.
Source: Glassnode
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