Matrixport: Stablecoin Inflows Persist, Setting The Stage For Increased Bitcoin Demand
In Brief
Matrixport’s market analysis shows that although the fast growth of stablecoins observed in Q4 2024 has slowed down, the overall upward trajectory remains intact, suggesting ongoing capital inflows into cryptocurrency markets.
Cryptocurrency service provider Matrixport has released a market analysis showing that although the fast growth of stablecoins observed in Q4 2024 has slowed down, the overall upward trajectory remains intact, suggesting ongoing capital inflows into cryptocurrency markets.
Importantly, despite regulatory changes, such as the impact of Europe’s MiCA framework on USDT, there have been no outflows. As stablecoin inflows rise gradually, it’s possible that demand for Bitcoin will also increase, potentially driving further price growth.
As of March 14th, the total supply of stablecoins has reached $219 billion and continues to rise. Historical trends show that the supply of stablecoins typically peaks during market cycles at their highest points, with the last peak of $187 billion recorded in April 2022, just before a market downturn. Given the current higher-than-ever supply and its continued growth, this suggests that the market may still be in a growth phase and has not yet reached its peak.
Stablecoins are a crucial component in the cryptocurrency ecosystem, serving as a bridge between fiat currencies and the cryptocurrency market, and making up the majority of cryptocurrency trading pairs and liquidity. The increase in stablecoin supply likely reflects a broader market movement of assets into stablecoins, signaling preparation for increased trading and potential market activity.
Bitcoin Price Fluctuates Above $82K Amid Growing Investor Caution And Bearish Predictions
As of the current writing, Bitcoin is priced at $82,826, reflecting a decline of approximately 0.84% in the past 24 hours. Its highest recorded price during this period was $84,644, with the lowest reaching $82,361. Over the past week, Bitcoin has risen from $79,356 to remain above the $80,000 threshold, according to CoinMarketCap data.
Despite this, investors are remaining cautious. Ki Young Ju, CEO of CryptoQuant, has suggested that Bitcoin’s bull market may already be over and predicts 6 to 12 months of either bearish or sideways price movement.
Ki Young Ju pointed out that all Bitcoin on-chain metrics are signaling a bear market. “With fresh liquidity drying up, new whales are selling Bitcoin at lower prices,” he explained.
This analysis follows closely after Bitcoin funding rates, which measure the cost of holding long or short positions in cryptocurrency futures, have been hovering near 0%, signaling growing indecisiveness among traders.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
