## Stablecoin Inflows More Critical Than Bitcoin Spot ETF for Crypto Market Health
The cryptocurrency community continues to focus on the daily capital flows into Bitcoin spot ETFs listed on U.S. exchanges. However, a new argument suggests that the supply of stablecoins holds more significance for the overall health of the cryptocurrency market.
According to CoinDesk on the 25th, Marcus Thielen, founder of 10x Research, stated, “The inflow of funds into stablecoins has served as a pillar supporting the strength of the cryptocurrency market.” He added, “While most have focused on ETF flows, inflows into stablecoins have been a more meaningful force in maintaining high cryptocurrency prices.”
Thielen warned, “If the inflow of funds into stablecoins slows down, a significant market correction could ensue.”
In reality, more capital is flowing into the cryptocurrency market through stablecoins than through Bitcoin spot ETFs. Since the launch of Bitcoin spot ETFs in the U.S. on January 11, the combined market capitalization of the two major stablecoins, USDT and USDC, has increased by $25.6 billion, reaching an all-time high of $143.8 billion. Over the same period, the cumulative net inflow into Bitcoin spot ETFs totaled $12.2 billion.
A chart compiled by 10x Research shows that while recent inflows into Bitcoin spot ETFs have slowed, the market capitalization of USDT and USDC continues to trend upwards.
As of 1:48 p.m. New York time on the 25th, Bitcoin was trading at $64,549 on CoinMarketCap, down 0.46% from 24 hours earlier. The day’s low was recorded at $62,783.63. Bitcoin has been undergoing a correction since hitting an all-time high of $73,750.07 on the 14th of last month.
