The rise in stablecoin market cap often affects Bitcoin's price. Currently, stablecoin capitalization has risen to $219 billion, and in 2025, Bitcoin surpassed $100k.
Stablecoin Market Cap Growth and Bitcoin Price
Stablecoin market capitalization reached $187 billion in April 2022, when Bitcoin approached $40,000. By 2025, the capitalization rose to $219 billion, with Bitcoin surpassing $100k. This increase in stablecoin capitalization signals ongoing investor liquidity, which is more characteristic of bull markets.
Short-term Bitcoin Holders
In late 2024, short-term Bitcoin holders sold off about $100 billion worth of assets, increasing stress on the crypto market. As temporary holders exit, the market may weaken, but this provides an opportunity for long-term investors. Their involvement can contribute to market recovery.
Why the Bear Sentiments in Crypto Market
The stock market remains in a downtrend, with bears accounting for over 55% for three consecutive weeks. Online searches for cryptocurrency purchases peaked in September 2021, declining by 2023. However, there is a slight resurgence of interest in late 2024, potentially boosting purchasing power.
The continued growth of stablecoin capitalization and interest in cryptocurrencies might lead to changing market trends. The participation of long-term investors will undoubtedly play a key role in the future state of the market.
