- Bitcoin rose above $97,000 on Friday as the stablecoin market witnessed a fresh influx of liquidity.
- The stablecoin market cap grew by $5 billion in April, rising 2.2% to $238 billion.
- USDT and USDC market cap rose by $2.5 billion and $1.2 billion over the past week.
Bitcoin (BTC) rose above $97,000 on Friday as the top cryptocurrency looked set to recover the $100,000 level heading into the weekend. The rise was fueled by increased inflows into the stablecoin market last week, particularly from USDT and USDC, which added $2.5 billion and $1.2 billion to their market caps, respectively.
Bitcoin rallies as stablecoin market sees fresh inflows
The stablecoin market cap saw a 2.2% gain in April, rising to $238 billion. The rise was fueled by USDT and USDC inflows in the past month.
The leading stablecoins saw a surge in their market cap in the past week alone. USDT's market cap increased by $2.5 billion, while USDC saw a $1.2 billion rise.
USDC's market cap grew 3.07% to a record $62.1 billion in April, pushing its market share to 26.0% — the highest level since February 2023, according to CoinDesk stablecoin report.
On the other hand, USDT's market cap climbed 2.26% to $148 billion, marking its twentieth straight monthly rise. Its market share also saw a modest rise from 61.8% to 61.9%, while its trading dominance on centralized exchanges reached 75.2% of total stablecoin volume.
The surge in stablecoin liquidity indicates a strong flow of capital into the crypto market. Historically, rising stablecoin market caps have aligned with Bitcoin price gains, reflecting greater liquidity and capital availability. The recent growth in USDT and USDC reinforces this trend, supporting upward pressure on Bitcoin, according to a Friday report by CryptoQuant.
"The 30-day expansion in USDT and USDC market cap is now above trend again, an indicator historically associated with rising Bitcoin prices," CryptoQuant stated.
Bitcoin rose above $97,000 early on Friday amid a slight recovery in the crypto market over the past week.
Long-Term Holders (LTH) have accumulated 254K BTC at an average price of $95K since the recent low, signaling strong conviction and minimal de-risking, according to Glassnode.
In addition, Glassnode highlighted that Short-Term Holders (STH) who have held BTC for over a month have returned to profit. A continuation of this trend could reduce selling pressure from older STHs and signal the early stages of a bullish trend.
BTC Euphoria Zone. Source: Glassnode
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Altcoins to watch this week: Cronos and Toncoin at risk of double-digit crash as bearish signals emerge
Altcoins Cronos (CRO) and Toncoin (TON) are showing signs of weakness this week, as both digital assets close below key ascending trendlines, signaling a potential shift in market structure.
Bitcoin’s recovery above $107,000 ignites DeFi rally: PENDLE, AERO, UNI charge forward
Bitcoin edges higher above $107,000 at press time on Tuesday after a 1.14% surge the previous day. Kicking off a minor market-wide recovery, Decentralized Finance tokens such as Pendle (PENDLE), Aerodrome Finance (AERO), and Uniswap (UNI) led the rally.
Ethereum Price Forecast: ETH investors resume buying amid strong ETF inflows and low exchange reserves
Ethereum (ETH) briefly crossed above $2,600 on Monday following a switch to accumulation in the top altcoin's exchange reserve and $583 million in inflows into ETH investment products last week.
JPMorgan set to roll out new crypto platform following trademark filing
JPMorgan Chase plans to launch a crypto platform branded JPMD; and expected to offer trading, exchange, transfer and payments for digital assets, according to a trademark filing submitted to the United States Patent and Trademark Office (PTO) on Sunday.
Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.