On October 9, a record surge in the amount of USD stablecoins and large Bitcoin transactions may lay the groundwork for a broader BTC price increase in the coming weeks, maintaining the bullish seasonal trend for October. CryptoQuant data shows that stablecoin liquidity continued to grow to a record $169 billion by the end of September, marking a 31% increase year-to-date.
Tether's USDT remains the dominant player in the stablecoin market, with its market cap increasing by $28 billion to nearly $120 billion, capturing an impressive 71% of the market share. Circle's USDC also saw significant growth, with its market cap rising by $11 billion to $36 billion, a 44% increase year-to-date, holding 21% of the market share.
Historical trends indicate a significant correlation between the amount of stablecoins held on cryptocurrency exchanges (which has grown by 20% this year) and the rise in Bitcoin prices. Julio Moreno, Head of Research at CryptoQuant, stated, 'The larger the balance of stablecoins in exchanges, the higher the prices of Bitcoin and other cryptocurrencies.
Since the current bull market cycle officially began in January 2023, the total amount of USDT (ERC20) in exchanges has grown from $9.2 billion to $22.7 billion (+146%).'.