# Bitcoin Stabilizes Amid Weakened Momentum; Stablecoin Supply Boosts Market Confidence
Bitcoin has hit a plateau as its recent upward momentum wanes, yet an increasing supply of stablecoins is offering some comfort to bullish investors. According to a CoinDesk report on May 3, despite this stagnation, the stablecoin supply continues to grow.
Bitcoin, which hit an all-time high of $73,750.07 on April 14, has faced pressures resulting in a correction. Key factors include the diminishing likelihood of a Federal Reserve rate cut in June and a decline in net inflows to Bitcoin spot ETFs. At 10:52 AM New York time on May 3, Bitcoin was trading at $66,560 on CoinMarketCap, up 1.12% over the past 24 hours but still about 9.8% below its peak.
During the same period, the combined supply of the top three stablecoins by market capitalization—USDT, USDC, and DAI—increased by 2.1%, reaching $141.42 billion, the highest level since May 2022, according to TradingView data. Year-to-date, these three stablecoins have collectively seen an increase of over $20 billion in supply.
Reflexivity Research interprets the expanding stablecoin supply, a proxy for liquidity in the cryptocurrency market, as a positive signal. The research firm noted in its May 2 newsletter, “The continued increase in stablecoin supply indicates ongoing capital inflows into the cryptocurrency market.”
CoinDesk noted that the persistence of increasing stablecoin supply suggests strong buying interest during Bitcoin’s downturn, potentially signaling a broader upward trend in the near future.
In recent years, stablecoins, led by Tether, have emerged as a primary mechanism for purchasing cryptocurrencies in the spot market and trading derivatives. Since late 2021, traders have increasingly favored using stablecoins over tokens for margin and settlement in cryptocurrency futures.
