$219 Billion Surge in Stablecoin Supply: A Sign of Sustained Bull Momentum, Not a Market Peak

Stablecoin Supply Surge Suggests Crypto Market Is Mid-Cycle, Not at Peak

The ongoing cryptocurrency market adjustment is simply the midpoint of the bull cycle, rather than the peak, considering the consistently increasing supply of stablecoins, which could indicate more forthcoming investments, according to experts.

The total supply of stablecoins has exceeded $219 billion, implying that the present cycle is still quite distant from its peak.

Historically, peaks in stablecoin supply have coincided with the peaks of crypto cycles, as noted in a March 14 X post by the crypto intelligence platform IntoTheBlock, which stated:

“In April 2022, supply reached $187B—right as the bear market commenced. Currently, it stands at $219B and is still rising, indicating that we are likely still mid-cycle.”

Rising stablecoin deposits to cryptocurrency exchanges can indicate incoming purchasing pressure and an increasing investor interest, as stablecoins serve as the primary gateway for investors transitioning from fiat to the cryptocurrency sector.

However, the price of Ether (ETH) has decreased more than 52% over the last three months, after peaking above $4,100 on December 16, 2024, and analysts are anticipating another drop below $1,900, which is viewed as a “strong” demand zone that might attract more investments into the largest cryptocurrency.

Related: Bitcoin needs to close above $81K this week to evade downside prior to FOMC

The crypto market might lack direction before the FOMC meeting

In spite of the growing stablecoin supply, the crypto market could continue to lack direction as next week’s Federal Open Market Committee (FOMC) meeting approaches.

The upcoming FOMC meeting may be critical for the cryptocurrency market, which remains affected by macroeconomic dynamics, according to Stella Zlatareva, dispatch editor at Nexo digital asset investment platform.

Zlatareva shared with Cointelegraph:

“Bitcoin’s movement beneath significant technical benchmarks, paralleling the S&P 500’s pattern, underscores the market’s cautious sentiment as traders await essential economic data for guidance, including U.S. retail sales and the FOMC gathering.”

“All attention is focused on next Wednesday’s FOMC meeting, expecting insights into U.S. monetary policy and possible changes in interest rates, particularly given the recent drops in U.S. PPI and initial jobless claims figures, which suggest an economic slowdown,” she elaborated.

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The forecasts arrive just days ahead of the next FOMC meeting set for March 19. Markets are currently estimating a 98% probability that the Fed will maintain the current interest rates, based on the latest assessments from the CME Group’s FedWatch tool.

Despite the likelihood of short-term fluctuations, investors remain hopeful for the remainder of 2025, with VanEck predicting a $6,000 peak for Ether’s price and a $180,000 valuation for Bitcoin in 2025.

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