Bitcoin (BTC) Price Acceleration Is Unfolding Alongside a Major Expansion in Stablecoin Liquidity

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.

Recent on-chain data from CryptoQuant has revealed a striking correlation between major expansions in stablecoin liquidity and Bitcoin’s (BTC) price acceleration.

As the cryptocurrency market adjusts to new trends in market share, the role of stablecoins like Tether’s (USDT) in fueling broader market liquidity becomes increasingly apparent.

In the past 20 days alone, there has been a $6 billion rise in Tether’s market capitalization. With the total USDT supply now nearing $150 billion, a recurring pattern of increased issuance coinciding with positive price momentum in Bitcoin is evident.

USDT Inflows Fuel Bitcoin’s Rally From $90,000

According to CryptoQuant’s 30-day USDT market cap change chart, a green spike in early May 2025 marks the surge in newly issued stablecoins, reaching the highest inflow levels since March.

This massive influx coincides with Bitcoin’s ascent towards the $100,000 milestone, showcasing a sustained uptrend that commenced in late 2023.

As Bitcoin dominance has declined while Ethereum’s share has grown, it appears that a portion of the USDT inflows are being allocated into other digital assets. 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 highlights two significant dates: December 16 and September 22, which may correspond to macroeconomic developments or ETF-related announcements, affecting liquidity.

Is A Decrease In USDT Issuance Imminent?

Ultimately, the broader upward trend of USDT supports the growing liquidity in the crypto space. With now $ 150 billion as its market cap at a highest level, Tether’s position as a liquidity force in digital finance is evident.

With such stellar performance, it remains to be seen if there will be a slowdown in USDT issuance going forward. Historically, periods of decreasing or stagnant USDT issuance, like those seen in late 2022 and early 2025, have coincided with price stagnation or declines in Bitcoin.

However, the cryptocurrency is quickly shifting with new trends in DeFi and the metaverse.