Stablecoin Cap Shows Early Sign Of Reversal, Why This Could Benefit Bitcoin
The stablecoin market cap has returned towards equilibrium and may be gearing up for a reversal. Here's how Bitcoin could benefit from this....
- Data from Glassnode shows that the aggregate stablecoin market cap has returned to equilibrium after a decline of 14 months.
- The aggregate stablecoin market cap refers to the total valuation in USD of the top five stablecoins: Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), and TrueUSD (TUSD).
- The 30-day percentage change in the aggregate market cap indicates whether there have been net inflows or outflows of capital in the stablecoin market.
- During the 2021 bull run, the market cap saw positive growth, indicating net inflows. As the bear market began in 2022, the market cap decreased and eventually transitioned to net outflows.
- Currently, the market cap has neared equilibrium, suggesting the potential for a reversal and net inflows.
- If the stablecoin market cap expands, it could be a bullish sign for Bitcoin as it would mean more capital available to purchase the asset.
The article presents a positive sentiment towards the potential reversal in the stablecoin market cap and its potential impact on Bitcoin.