TechFlow, November 28 — According to a recent research report by CryptoQuant, the total supply of ERC20 stablecoins surpassed $160 billion in 2025, hitting an all-time high and emerging as a key indicator for forecasting Bitcoin price movements. The study found that stablecoin supply shows a significantly stronger correlation with Bitcoin's price trend compared to global M2 money supply.
The report analyzes that stablecoins, as the primary source of liquidity in the crypto market, can more quickly and directly reflect investor capital flows. Growth in stablecoin supply often precedes increases in Bitcoin's price. During both the 2021 bull market and the 2024–2025 market recovery, surges in stablecoin supply clearly preceded Bitcoin price rallies.
CryptoQuant's research team stated that the current stablecoin supply at historic highs indicates continuously strengthening underlying market buying power, which could become a major driver for Bitcoin's next price movement.
