MEXC COO Tracy Jin asserts that Bitcoin’s price increasingly relies on stablecoin inflows. A predicted inflow of $1 billion in stablecoins could elevate Bitcoin’s value by 8-10%. With stablecoin demand staying high despite market volatility, growth projections suggest stablecoins could hit $2 trillion by 2026, significantly impacting Bitcoin’s liquidity and price.
According to Tracy Jin, COO of crypto exchange MEXC, the price of Bitcoin is increasingly guided by stablecoins rather than just retail demand. She remarked that inflows of $1 billion in stablecoins could push Bitcoin’s price up by about 8 to 10 percent. This trend highlights the growing importance of stablecoins in the cryptocurrency market today.
On April 30, Jin discussed with crypto.news how stablecoins like Tether and Circle are increasingly driving Bitcoin’s growth. She noted that fiat interest converting into these stablecoins feeds liquidity into Bitcoin. This has been a critical factor in Bitcoin’s upward trajectory throughout the year, showing how interconnected stablecoins and retail demand have become.
Interestingly, Jin pointed out that despite ongoing macroeconomic uncertainties, there’s still a robust demand for stablecoins. To date, the market cap of stablecoins has shot up by over $38 billion this year alone and looks set to continue increasing. This influx of funds into stablecoins is not just good news for them but is boosting Bitcoin demand as well.
As stablecoins’ presence grows, they now represent about 1% of the global M2 USD money supply. Over the past year, they’ve processed a staggering volume, reaching over $33 trillion, with around $2.8 trillion occurring in just the past month. This makes it clear that stablecoins are becoming a major player in the financial landscape.
Jin added that stablecoins serve as a crucial bridge between traditional finance and the world of cryptocurrency, especially during turbulent market conditions. Their utility is expected to propel the market cap of stablecoins beyond $2 trillion by 2026, driven by increased interest from sovereign banks and corporations looking to issue their own stablecoins.
With regulatory clarity becoming a priority for many governments, this growth will likely help bolster the broader financial services landscape. Jin believes that as stablecoins evolve, they will not only act as a hedge against market volatility but will also enhance capital deployment across various sectors.
If the market cap of stablecoins indeed reaches $2 trillion, it would mark a stunning 200% growth from the current level of approximately $241 billion. For Bitcoin, this could mean an infusion of liquidity, inevitably applying upward pressure on its price as more investors seek entry during these turbulent times.
