The Crypto and US stock markets Started the week on the worst possible note and reacted negatively to the launch of the Chinese AI platform Deepseek. Despite the first downturn, the Bitcoin price has since returned above the level of $ 100,000 and moved mostly sideways to close the week.
According to a new report on the chain, liquidity on centralized exchanges has reached a new record high, which indicates that crypto rolls have now increased purchasing power. The question is – can this fresh purchasing power drive the Bitcoin price to a new height?
The influence of growing stablecoins on crypto prices
In its latest weekly report, Blockchain Intelligence Firm Cryptoquant revealed Liquidity in the crypto market has experienced a significant increase since the US presidential election in November 2024. Liquidity in crypto is measured by the total value of circulating Stablecoins, which recently reached a new highest time.
According to data from Cryptoquant, surpassed market value for dollar supported Stablecoins brand $ 200 billion last week and is currently $ 204 billion, a record high. This value represents an over 22% expansion since Donald Trump’s victory in the American elections.
An important contributor to this growth is Tothers USDT, which accounts for almost 70% of the USD-Denominated StableCoin market. The USDT’s market value is currently about $ 139 million, which reflects an increase of 15% since November last year.
Source: CryptoQuant
Interestingly, this expansion has been reflected in the Stablecoin balance for centralized exchanges, with the total amount USDT on these trading platforms now at record levels. Cryptoquant revealed that the USDT market ceiling on centralized cryptout exchanges has increased from $ 30.5 billion to $ 43 billion over the past three months, which corresponds to an increase of 41%.
Dollar-supported Stablecoins are an important source of liquidity for trade in centralized stock exchanges. Therefore an expansion in Stablecoin range of exchanges means an increase in the purchasing power of crypto investors.
“The next leg up for bitcoin and crypto prices can be around the corner, as the Stablecoin compulsion impulse begins to expand again,” Cryptoquant noted. In addition, a growing Stablecoin market value – especially on centralized exchanges – is historically correlated with higher bitcoin prices.
Cryptoquant added:
The USDT liquidity impulse (30-day % change in market value) is now somewhat positive after being contracted by 2 % at the beginning of 2025. A further acceleration usually drives crypto prices higher. At the same time, USDC’s liquidity impulse expands by 20%, the fastest rate of at least one year.
Bitcoin price
From this writing, bitcoin is valued at about $ 102,400, which reflects an almost 2% decline over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Image from iStock, chart from tradingview
