 ▲ Stablecoin |
As fears of war in the Middle East rapidly subside, Bitcoin has once again surpassed $70,000, while the expansion of stablecoin supply is increasing the likelihood of new liquidity flowing into the cryptocurrency market.
According to investment-focused media outlet FXStreet on March 10 (local time), market anxiety eased significantly over the past 24 hours after U.S. President Donald Trump mentioned that the Middle East conflict related to Iran could come to an end soon. As a result, Bitcoin (BTC), which had shown relatively resilient performance amid volatility, climbed more than 4% to break above the $70,000 mark again.
Major altcoins also posted gains. Large-cap assets such as Ethereum (ETH), Solana (SOL), and XRP rose between 3% and 5%, while some mid- to small-cap tokens including Hyperliquid (HYPE), Zcash (ZEC), and Render (RENDER) recorded increases of 7% to 11%. This movement is interpreted as a sign of rapidly recovering investor sentiment alongside easing geopolitical risks.
In particular, the expansion of stablecoin supply suggests a rise in potential buying power in the market. The market capitalization of the dollar-pegged stablecoin USD Coin (USDC) is approaching approximately $78.6 billion, nearing record levels again. This marks a recovery from its late-January low of $70.9 billion. The supply of market-leading stablecoin Tether (USDT) has also increased from around $183.5 billion at the end of February to approximately $184 billion.
An increase in stablecoin supply indicates a growing pool of sidelined capital in the market. Such funds could eventually flow into cryptocurrency purchases, supporting upward momentum. Additionally, inflows into spot Bitcoin exchange-traded funds (ETFs) are being cited as another factor underpinning the market’s upward trend.
However, some indicators continue to signal caution. The Coinbase Premium Index, which measures the price gap of Bitcoin between U.S.-based exchange Coinbase and global exchange Binance, remains in negative territory. This suggests that buying demand from U.S. investors has yet to fully recover. Meanwhile, with international oil prices falling back below $100 per barrel and both the U.S. dollar index and U.S. Treasury yields retreating from recent highs, there is also the possibility of continued stability across risk assets.
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