End-of-year stablecoin cap rally mirrors Bitcoin’s price uptick
Summary
Stablecoin supplies can indicate liquidity trends in the cryptocurrency market. In 2022, top stablecoins experienced a decrease in cap early in the year, followed by a significant increase in Q4. Tether (USDT) saw a particularly large increase, which may suggest significant market changes. This increase coincided with Bitcoin's price movements, suggesting a potential correlation that could change our understanding of the role of market liquidity in crypto valuation.
