The current correction in the crypto market is just the middle of the bull cycle, not the top, based on the ongoing stablecoin supply, which can signal more incoming investment according to analysts.
The combined -combined Stablecoin supply exceeds $ 219 billion, suggesting that the current cycle is still far from its top.
Source: Intoteblock
History, Stablecoin supply peaks are aligned with the tops of the crypto cycle, according to a March 14 x Post Through the Crypto Intotheblock intelligence platform, to write:
“In April 2022, the supply hit $ 187B – as the bear market began. Now it’s up to $ 219B and still rising, suggesting that we’re still in the middle of the cycle.”
Adding stablecoin flows to crypto exchanges can signal incoming pressure purchase and an appetite for investors, as Stablecoins are the main investor in the ramp from Fiat to the world of crypto.
Still, ether (Eth) The price dropped by more than 52% in the past three months, after it sank above $ 4,100 on December 16, 2024, and the analysts were looking at another denial below $ 1,900, a “Strong” demand zone That can bring more investment to the largest cryptocurrency in the world.
Related: Bitcoin Weekly Needs Near $ 81k to avoid downside in advance of FOMC
Crypto Market is likely to lack direction leading to FOMC Meeting: Analyst
Despite the rising stablecoin supply, the crypto market may continue to lack direction in advance of next week’s Federal Open Market Committee (FOMC) meeting.
Next week the FOMC meeting may be decisive for crypto markets, which remains influenced by macroeconomic developments, according to Stella Zlatareva, dispatch editor on the Nexo Digital Asset Investment Platform.
Zlatareva told Cointelegraph:
“The movement of Bitcoin below the basic technical levels, which reflects the S&P 500 trajectory, features a careful market tone while entrepreneurs are waiting for basic economic data for the direction, including US retail sales and the FOMC meeting.”
“All eyes set on the next FOMC meeting Wednesday, which expects views on US financial policy and potential interest rate adjustments, especially given the US PPI’s recent denial and initial claims of numbers, pointing to a slow economy,” he added.
Related: fTX is liquid of $ 1.5B in 3ac assets 2 weeks before the hedge fund collapse
Predictions will come days before the next FOMC meeting scheduled for March 19. The markets are currently pricing at a 98% chance that the Fed will maintain interest rates, according to the latest estimates of 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 foretold a $ 6,000 I -Cycle Top for Ether prices and a $ 180,000 Bitcoin price during 2025.
https://www.youtube.com/watch?v=1iyxu9W47to
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