- $6B USDT inflow fuels Bitcoin rally toward $100K, shows strong liquidity correlation
- Ethereum gains share as altcoins attract part of the rising stablecoin capital
- Historical USDT surges often precede BTC price spikes, signaling bullish momentum
Bitcoin’s recent price acceleration is unfolding alongside a major expansion in stablecoin liquidity, marked by a $6 billion rise in Tether’s (USDT) market capitalization over the last 20 days. With the total USDT supply now nearing $150 billion, on-chain data from CryptoQuant shows a recurring pattern where increased USDT issuance corresponds with positive price momentum in Bitcoin.
According to CryptoQuant’s 30-day USDT market cap change chart, a green spike in early May 2025 reflects a surge in newly issued stablecoins, representing the highest inflow levels since March. This rise coincides with Bitcoin approaching the $100,000 mark, continuing a sustained uptrend that began in late 2023.
The correlation between Tether’s supply and Bitcoin’s price performance is not new. Historical data shows that during periods of growing USDT supply, Bitcoin has generally trended upward. Conversely, when USDT issuance slowed or declined, as seen in late 2022 and early 2025, Bitcoin experienced price stagnation or declines.
The latest increase in stablecoin issuance comes when broader crypto markets closely watch liquidity trends. Tether’s steady supply growth, illustrated by a rising dotted purple line in the CryptoQuant chart, supports a narrative of continued capital inflow into digital assets.
Shifting Market Share Among Crypto Assets
While Bitcoin remains the primary beneficiary of USDT inflows, other digital assets also appear to be gaining traction. Ethereum’s market share has grown relative to Bitcoin’s dominance, indicating that some recent USDT injection may be rotating into altcoins.
This capital redistribution aligns with broader market behavior in past cycles, where increased stablecoin availability supports rising valuations across multiple crypto assets. The data points to a diversified allocation strategy by traders and institutions as liquidity deepens.
The chart also marks two major dates, December 16 and September 22, corresponding with past BTC and USDT activity shifts. These dates may align with macroeconomic developments or ETF-related announcements, potentially affecting liquidity inflows across crypto markets.
Liquidity Trends Signal Momentum Ahead
The broader upward trend of USDT supply supports the growing liquidity in the crypto space. With now $ 150 billion as its market cap at a highest level, Tether justifies its top position as a liquidity force in digital finance.
With stablecoin issuance gaining, the market will be well placed to witness further increases. From a historical perspective, the growth of the tether supply is a harbinger of the bullish trends in Bitcoin and other cryptocurrencies. CryptoQuant data confirms this. Although the future inflows cannot be guaranteed, the current predicament reflects past periods of robust price momentum.
