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- Stablecoin supply has increased to $160 billion, out of which $32 billion sits on centralized exchanges waiting to be deployed in Bitcoin (BTC) and others.
- Analysts have disclosed that a 10-15% increase in stablecoin reserve on exchanges usually precedes a rally for BTC and Ethereum (ETH).
Just as predicted in our recent analysis, Bitcoin (BTC) has extended its bearish run, sliding below the $115k support level to find a resort at the $113.6k point. According to popular crypto commentator Lark Davis, the asset could plunge even further to the 50% and 61.8% Fibonacci retracement levels ($108k-$112k), where profit-taking could slow down and new buying momentum could emerge.
Price Actions of Bitcoin (BTC), Ethereum (ETH), and XRP
For now, Bitcoin has recorded losses across some major trading sessions, including the daily (1.18%), weekly (4.6%), and monthly (4%) time frames. However, its 24-hour trading volume has risen by 8% with $72 billion moving within the market. This declining price performance is not only restricted to Bitcoin.
Ethereum (ETH) is also facing similar headwinds as it declines by 1.2% in the last 24 hours and 9% in the last seven days to trade at $4,180. Unlike BTC, ETH’s monthly gain is still up by 10%, along with its daily trading volume, which is also up by 4%.
As featured in our recent coverage, ETH has been in high demand among corporate investors, triggering its earlier rally above $4000. With the buying pressure still high, analysts expect a rebound soon.
XRP has equally plunged below its crucial support level to trade at $2.9. According to market data, the asset is down by 3.8% in the last 24 hours, 9.8% in the last seven days, and 17% in the last 30 days. Per our recent publication, XRP whales are strongly defending the current position as they accumulate an additional 120 million XRP.
Stablecoin Reserve Increases
Amidst these harsh market conditions, some analysts remain hopeful as stablecoin reserves increase across major crypto exchanges. Data confirms that the stablecoin supply has increased to $160 billion. Mathematically, this represents a 20% surge since February 2025. Out of this, a whopping $32 billion “sits” on exchanges.
According to a CryptoQuant report, the $160 billion “macro total” is a record liquidity, while the $32 billion “micro total” exists as a “ready-to-trade capital.” Technically, centralized exchanges record netflows of more than $1.2 billion per day. Historically, this level of accumulation precedes BTC and ETH rallies.
However, an analyst at CEX.IO, Illia Otychenko, explains that this is not automatic. Per his observation, the increase in stablecoin reserve on exchanges could mostly imply that investors are becoming extremely careful as they resort to a “wait and see” approach.
According to analysts at B2BINPAY, a 10-15% increase in stablecoin reserve usually accompanies a rally. The daily inflow also suggests that investors are still “sneaking around”, waiting for the right opportunity to enter the market.
As noted in our recent post, Ben Kurland, the CEO of crypto research and trading platform DYOR, has also disclosed that the market momentum may not go away anytime soon. In the medium term, Bitcoin is expected to rebound to reach $140k, as summarized in our earlier news story.
