Bitcoin (BTC) price acceleration is unfolding along with the main expansion of Stablecoin liquidity

Bitcoin’s recent price acceleration is being marked by a significant expansion of Stablecoin liquidity and a $600 million increase in Tether (USDT) market cap over the past 20 days.

CryptoQuant's latest on-chain data suggests that there is a striking correlation between the major expansion of Stablecoin liquidity and the acceleration of Bitcoin (BTC) price.

As the cryptocurrency market adapts to new trends in market share, the role of stablecoins such as Tether's (USDT) in fueling wider market liquidity has become increasingly obvious.

The market value of the tether has increased by $6 billion in the past 20 days alone. With the current total supply of nearly $150 billion now, the recurring pattern of issuances that coincide with the positive price momentum of Bitcoin is evident.

USDT rally inflows fuel from $90,000 Bitcoin

The green surge in early May 2025 marked a surge in newly issued Stablecoins, reaching its highest inflow since March, according to CryptoQuant's 30-day USDT market cap change chart.

This massive influx is with Bitcoin’s rise to the $100,000 milestone, demonstrating the continued upward trend that began in late 2023.

As Bitcoin’s advantage declines while Ethereum’s share grows, it seems that a portion of the USDT inflow is being allocated to other digital assets. This capital redistribution has coincided with broader market behavior over the past cycle, with stable availability increasing valuation of multiple crypto assets over the past cycle. Data shows that as liquidity deepens, distribution strategies for traders and institutions are diversified.

The chart also highlights two important dates: December 16 and September 22, which may correspond to macroeconomic development or ETF-related announcements that affect liquidity.

USDT issuance is about to decline?

Ultimately, the broader upward trend of USDT supports the growing liquidity in the cryptocurrency sector. Currently, with its highest market cap of $150 billion, Tether's position as a liquidity force in digital financing is evident.

With such a great performance, it remains to be seen if USDT issuance will slow down. Historically, as seen in late 2022 and early 2025, the period of issuance coincides with stagnation in price or the decline in Bitcoin.

However, cryptocurrencies are rapidly shifting with new trends in Defi and Metaverse.

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