Rising $219B stablecoin supply signals mid-bull cycle, not market top

The current crypto market correction is merely the middle of the bull cycle, not the top, based on the steadily growing stablecoin supply, which may signal more incoming investment according to analysts.

The cumulative stablecoin supply has surpassed $219 billion, suggesting that the current cycle is still far from its top.

Source: IntoTheBlock

Historically, stablecoin supply peaks have aligned with crypto cycle tops, according to a March 14 X post by crypto intelligence platform IntoTheBlock, which wrote:

“In April 2022, supply hit $187B—just as the bear market started. Now it’s at $219B and still rising, suggesting we’re likely still mid-cycle.”

Increasing stablecoin inflows to crypto exchanges can signal incoming buying pressure and growing investor appetite, as stablecoins are the main investor on-ramp from fiat to the crypto world. 

Still, Ether (ETH) price is down over 52% over the past three months, after it peaked above $4,100 on Dec. 16, 2024, and analysts are eying another decline below $1,900, a “robust” demand zone that may bring more investment into the world’s largest cryptocurrency.

Related: Bitcoin needs weekly close above $81K to avoid downside ahead of FOMC

Crypto market will likely lack direction ahead of FOMC meeting: analyst

Despite the rising stablecoin supply, the crypto market may continue to lack direction ahead of next week’s Federal Open Market Committee (FOMC) meeting.

Next week’s FOMC meeting may be decisive for crypto markets, which remain influenced by macroeconomic developments, according to Stella Zlatareva, dispatch editor at Nexo digital asset investment platform.

Zlatareva told Cointelegraph:

“Bitcoin’s movement below key technical levels, mirroring the S&P 500’s trajectory, highlights the market’s cautious tone as traders await key economic data for direction, including U.S. retail sales and the FOMC meeting.”

“All eyes are set on next Wednesday's FOMC meeting, anticipating insights into U.S. monetary policy and potential interest rate adjustments, especially given the recent declines in U.S. PPI and initial jobless claims figures, which point towards a slowing economy,” she added.

Related: FTX liquidated $1.5B in 3AC assets 2 weeks before hedge fund’s collapse

The predictions come days ahead of the next FOMC meeting scheduled for March 19. Markets are currently pricing in a 98% chance that the Fed will keep interest rates steady, according to the latest estimates of the CME Group’s FedWatch tool.

Source: CME Group’s FedWatch tool

Despite the potential for short-term volatility, investors remain optimistic for the rest of 2025, VanEck predicted a $6,000 cycle top for Ether’s price and a $180,000 Bitcoin price during 2025.

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