Rising $219B stablecoin supply signals mid-bull cycle, not market top

The present crypto market correction is merely the center of the bull cycle, not the top, primarily based on the steadily rising stablecoin supply, which can sign extra incoming funding in accordance with analysts.

The cumulative stablecoin supply has surpassed $219 billion, suggesting that the present cycle remains to be removed from its top.

Historically, stablecoin supply peaks have aligned with crypto cycle tops, in accordance with a March 14 X publish by crypto intelligence platform IntoTheBlock, which wrote:

“In April 2022, supply hit $187B—just as the bear market started. Now it’s at $219B and still rising, suggesting we’re likely still mid-cycle.”

Increasing stablecoin inflows to crypto exchanges can sign incoming shopping for strain and rising investor urge for food, as stablecoins are the primary investor on-ramp from fiat to the crypto world. 

Still, Ether (ETH) value is down over 52% over the previous three months, after it peaked above $4,100 on Dec. 16, 2024, and analysts are eying one other decline beneath $1,900, a “robust” demand zone which will carry extra funding into the world’s largest cryptocurrency.

Related: Bitcoin wants weekly shut above $81K to keep away from draw back forward of FOMC

Crypto market will doubtless lack course forward of FOMC assembly: analyst

Despite the rising stablecoin supply, the crypto market could proceed to lack course forward of subsequent week’s Federal Open Market Committee (FOMC) assembly.

Next week’s FOMC assembly could also be decisive for crypto markets, which stay influenced by macroeconomic developments, in accordance with Stella Zlatareva, dispatch editor at Nexo digital asset funding platform.

Zlatareva advised Cointelegraph:

“Bitcoin’s movement below key technical levels, mirroring the S&P 500’s trajectory, highlights the market’s cautious tone as traders await key economic data for direction, including U.S. retail sales and the FOMC meeting.”

“All eyes are set on next Wednesday’s FOMC meeting, anticipating insights into U.S. monetary policy and potential interest rate adjustments, especially given the recent declines in U.S. PPI and initial jobless claims figures, which point towards a slowing economy,” she added.

Related: FTX liquidated $1.5B in 3AC property 2 weeks earlier than hedge fund’s collapse

The predictions come days forward of the subsequent FOMC assembly scheduled for March 19. Markets are presently pricing in a 98% likelihood that the Fed will preserve rates of interest regular, in accordance with the newest estimates of the CME Group’s FedWatch device.

Despite the potential for short-term volatility, buyers stay optimistic for the remainder of 2025, VanEck predicted a $6,000 cycle top for Ether’s value and a $180,000 Bitcoin value throughout 2025.

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