Bitcoin: No Peak Yet, Data Shows

newsbtc.com

March 15, 2025 by Jhon E. Bermúdez

Reason to trust We maintain a strict editorial policy focused on bringing you accurate, relevant, and unbiased news. Our content is created by industry experts and undergoes thorough reviews to ensure quality. We are committed to upholding the highest standards in both our reporting and publishing practices. Strict editorial policy that focuses on accuracy, relevance,

Reason to trust

We maintain a strict editorial policy focused on bringing you accurate, relevant, and unbiased news.

Our content is created by industry experts and undergoes thorough reviews to ensure quality.

We are committed to upholding the highest standards in both our reporting and publishing practices.

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

This article is also available in Spanish.

Crypto analytics experts are suggesting that stablecoin data might offer clues on whether Bitcoin has reached its market peak.

Stablecoin Market Caps Reach New Heights

In a recent post on X, IntoTheBlock, a market intelligence platform, analyzed the growing trend in the total stablecoin market capitalization. For those new to the term, “stablecoins” are cryptocurrencies designed to mirror the value of a fiat currency, most commonly the US dollar.

Investors typically use stablecoins as a safe haven to shield themselves from the notorious volatility of cryptocurrencies like Bitcoin. However, traders often accumulate stablecoins when they’re preparing to jump back into the more dynamic, and potentially rewarding, crypto market.

Related Reading

Because of this, the total supply of these fiat-pegged tokens is often seen as a reserve of readily available capital, or ‘dry powder,’ waiting to flow into Bitcoin and other cryptocurrencies. Given their strategic position in the crypto ecosystem, keeping tabs on the stablecoin market cap can provide valuable insights.

Here’s the chart shared by IntoTheBlock, illustrating the stablecoin market cap trend over the last few years:

Stablecoins Market Cap — As you can see, this metric has been steadily climbing in recent days | Source: IntoTheBlock on X

The graph clearly shows a recent upward trend, with the stablecoin market cap reaching new all-time highs (ATHs). Following this latest surge, it has impressively reached $219 billion.

To give you some context, Ethereum (ETH), the second-largest cryptocurrency, has a market cap just shy of $233 billion. This means stablecoins are now less than $14 billion away from matching Ethereum’s total market value.

IntoTheBlock highlighted a compelling historical pattern related to this metric. The chart indicates that the stablecoin market cap peaked at $187 billion in April 2022 during the previous cycle. Notably, this peak coincided with the onset of the bear market.

“Historically, stablecoin supply peaks align with cycle highs,” IntoTheBlock points out. Interestingly, in the current cycle, the stablecoin market cap continues its ascent, even as Bitcoin’s price has seen some dips. If past patterns hold true, this could suggest that Bitcoin, and the broader crypto market, have not yet entered a bear market.

However, it’s important to acknowledge that recent market conditions haven’t been entirely bullish. The most optimistic scenario arises when both Bitcoin and stablecoin market caps are rising simultaneously. This indicates a net inflow of fresh capital entering the crypto space.