Emre Yumlu 
The rise in stablecoin supply and the uncertainty in the crypto market ahead of the FOMC meeting suggest we are in the middle of the bull cycle.
Stablecoin Supply and Crypto Market Correction Indicate We Are in the Middle of the Bull Cycle
According to analysts, the current cryptocurrency market correction, combined with the steady rise in stablecoin supply, suggests that we are in the middle of the bull cycle, not at its peak.
The total stablecoin supply has surpassed $219 billion, indicating that we are still far from the peak of the current cycle.
Historically, stablecoin supply peaks have often aligned with the peaks of crypto cycles.
Crypto analysis platform IntoTheBlock stated in a post on March 14:
“In April 2022, the supply reached $187 billion—just as the bear market began. Now it’s risen to $219 billion and continues to grow, indicating we’re likely in the middle of the cycle.”
Increasing stablecoin inflows to crypto exchanges may signal rising buying pressure and growing investor interest, as stablecoins serve as the main investment vehicle from fiat currencies into the crypto world.
However, Ether’s price has fallen by more than 52% in the last three months, and after peaking above $4,100 on December 16, 2024, analysts expect the price to drop below $1,900, a “strong” demand zone that may attract further investment.
Analysts Predict Potential Directionless Market Ahead of FOMC Meeting
Despite the rising stablecoin supply, the crypto market may experience directionless movement ahead of the upcoming Federal Open Market Committee (FOMC) meeting next week.
Stella Zlatareva, news editor at Nexo digital asset investment platform, stated that the crypto market continues to be influenced by macroeconomic developments:
“Bitcoin’s movement below key technical levels, mirroring the S&P 500’s trajectory, highlights the market’s cautious tone as traders await key economic data and the FOMC meeting for direction.”
Zlatareva added: “All eyes are on next Wednesday’s FOMC meeting, which promises to provide insights into U.S. monetary policy and potential interest rate adjustments, especially with recent declines in the U.S. Producer Price Index (PPI) and initial jobless claims, signaling a slowing economy.”
These predictions come just days ahead of the FOMC meeting scheduled for March 19. According to current market data, CME Group’s FedWatch tool is pricing in a 98% chance that the Fed will keep interest rates steady.
Despite the possibility of short-term volatility, investors remain optimistic for the rest of 2025. VanEck predicts that Ether’s price could reach $6,000 and Bitcoin’s could reach $180,000 during 2025.
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