Stablecoin market reaches all-time high as Bitcoin breaks from the bearish trend

Cryptoquant data showed that the total stablecoins market cap–driven by USDT and USDC market cap growth–reached a record high of $220B. The platform’s researchers noted that Bitcoin’s Bull Score Index, which measures market sentiment, jumped from 20 to 50, signaling BTC’s break out of the bearish territory into neutral.

The data confirmed that rising USDT and USDC market caps over the past 30 days helped increase stablecoin liquidity, thus increasing investment in other digital assets. As per the report, the shift pointed to a renewed appetite for crypto exposure, possibly driven by expectations of favorable macroeconomic conditions or upcoming developments in the crypto space.

The researchers also emphasized that the growth of stablecoin liquidity often preceded BTC price gains, as capital availability fueled trading and investment. Despite initially lagging behind the rapid expansion of stablecoin supply, Bitcoin’s recent rebound aligned with broader liquidity trends. The researchers also cautioned that while the increasing Bull Score Index reflected stronger stablecoin liquidity and Bitcoin’s breach of on-chain resistance levels, sustained rallies required scores above 60.

Stablecoin market cap surges to a record ATH

Liquidity is back.

Stablecoin market cap just hit $220B, a new record.

Bitcoin exits bearish phase as capital returns to the market. pic.twitter.com/LbnFpXFspb

— CryptoQuant.com (@cryptoquant_com) May 2, 2025

According to CryptoQuant’s report, stablecoin liquidity reached a record high of $220 billion, confirming the highest weekly stablecoin market cap growth since February 9th. The growth in liquidity–fueled by the expansion of USDT(+$2.5B) and USDC (+$1.2B) market caps over the past week–signaled an influx of capital into the crypto ecosystem. 

The 30-day expansion in USDT and USDC market caps was also above trend, with USDT’s market cap increasing by $5.3 billion in the last 30 days, while USDC’s market cap jumped by $6.0 billion over the same period. Both stablecoins grew above their 30-day moving averages.

However, the report also showed that USDT’s liquidity on crypto exchanges had not fully recovered. The total value of USDT on exchanges was $38 billion, down by 12% since its $43 billion high reached on February 21, 2025. Conversely, the total value of USDC on exchanges climbed to $6.5 billion—its highest level since March 2023.

Shen Jianguang, the VP and Chief Economist at JD.com, claimed that stablecoin transactions hit over $700 billion every month. Rita Liu, the CEO of RD Technologies, also pointed out growing interest in non-USD stablecoins. However, she acknowledged that the U.S. dollar-backed still dominated with about 99% of the market share. She also mentioned how a CNH-backed stablecoin could gain popularity, especially under Hong Kong’s upcoming regulations.

Bitcoin breaks out of bearish trend following stablecoins’ surge

The report also suggested that the growth of stablecoin liquidity supported upward pressure on Bitcoin–as capital availability fueled trading and investment, reinforcing the historical link between stablecoin liquidity and Bitcoin market strength. The research team also noted that Bitcoin’s Bull Score Index jumped from 20 to 50, signaling BTC’s break out of the bearish territory into neutral. However, they also warned that sustained rallies required scores above 60.

The platform’s analysts further noted that USDC’s rising exchange reserves could provide near-term support for crypto prices, as higher reserves enhanced market liquidity. However, USDT’s reduced exchange presence suggested that capital may be moving into other assets or off-platform storage. 

As per the report, Bitcoin’s price trajectory remained tethered to stablecoin dynamics, highlighting liquidity as a critical driver of market health. The researchers noted that analysts should monitor whether the Bull Score Index would completely cross into bullish territory, which signaled stronger investor confidence.