- Stablecoin supply hitting $220B in May marks a decisive return of liquidity and signals renewed confidence in crypto markets.
- Despite sharp April BTC outflows from Binance, internal transfer data shows no selling pressure, only strategic asset reshuffling.
- Surging USDT and USDC inflows since April confirm capital rotation into crypto, supporting Bitcoin’s sustained momentum above $ 90 K.
Capital is flooding back into crypto markets as the total stablecoin supply hits a new all-time high. Bitcoin’s latest rally toward $95,000 is tightly correlated with expanding liquidity across USDT, USDC, and major exchanges, reinforcing a broader risk-on sentiment.
Stablecoin Growth Signals Return of Crypto Liquidity
According to data from CryptoQuant, the entire market capitalization of stablecoins hit a record $220 billion in May 2025. This steady, stablecoin growth coincides with the 2025 price spike of Bitcoin and indicates that cryptocurrency marketplaces are becoming more liquid. Since late 2023, stablecoin supply has grown by $90 billion, while Bitcoin’s market value has tripled.
Analysts noted that “liquidity is back,” citing the persistent correlation between Bitcoin and stablecoin market trends. Even during March 2025’s correction to $85,000, USDT and USDC supply remained steady, pointing to strong capital retention. Stablecoins remain a crucial measure of liquidity across digital asset markets and a key indicator of investor confidence.
Exchange Netflows Show Shifting Capital Trends
On April 25, Binance logged a sharp 25,177 BTC net outflow, prompting speculation over institutional repositioning. However, wallet-level analysis revealed the Bitcoin transfer was likely internal, with no resulting price volatility. Such activity typically reflects wallet consolidation or routine security measures.
Despite the internal nature of the transfer, netflows continue to provide vital insight into capital behavior. CryptoQuant analyst Maartuun emphasized that legitimate Bitcoin outflows from exchanges, coupled with rising USDT and USDC balances, often suggest long-term accumulation. These trends reflect capital rotation and deepening liquidity in crypto markets.
USDT and USDC Inflows Reinforce Bitcoin Demand
As Bitcoin’s price rose toward $105,000 between October 2024 and January 2025, USDT’s 60-day market capitalization grew by over $20 billion. Though both slowed briefly in Q1 2025, stablecoin growth resumed by April. As of May, USDT expansion again exceeds its 30-day average, highlighting a resurgence in inflows.
USDC mirrored this path. From under $2 billion in August 2024, its 60-day supply surged to $15 billion by January 2025. May data shows renewed USDC issuance alongside growing Bitcoin demand, reinforcing a clear trend: stablecoin inflows are fueling crypto liquidity, supporting Bitcoin’s ongoing strength.
