Bitcoin Targets $117,000 as Stablecoin Liquidity Hits All-Time High

Bitcoin (BTC) is eyeing new record highs as stablecoin liquidity surges unprecedentedly, signaling strong market demand and increased capital inflows into the crypto space.

Stablecoin Liquidity: The Driving Force Behind Bitcoin’s Momentum

The total market capitalization of stablecoins has surpassed $204 billion, marking a significant $37 billion increase since Nov. 4, 2024, when Donald Trump won the U.S. presidential election, according to data from CryptoQuant.

Stablecoins, particularly Tether (USDT) and USD Coin (USDC), serve as a critical liquidity source in the cryptocurrency market, facilitating trading and investment without the friction of fiat onramps.

Recent data indicates that Tether’s market capitalization has surged by $19 billion (15%) to reach $139 billion, while USDC has experienced a more dramatic resurgence, rising by $17 billion (48%) to $52.5 billion.

Beyond market capitalization, the inflow of stablecoins into centralized exchanges has further reinforced the bullish sentiment surrounding Bitcoin.

Since November, the total value of USDT on trading platforms has climbed from $30.5 billion to $43 billion, marking a 41% increase.

Historically, rising stablecoin deposits on exchanges correlate with greater buying power, paving the way for Bitcoin’s continued ascent.

USDT’s liquidity impulse has recently turned positive after experiencing a 2% contraction at the start of 2025. USDC’s liquidity expansion has reached a 20% growth rate, the fastest pace in at least a year.

The liquidity impulse is a crucial factor driving Bitcoin’s near-term outlook, which measures the 30-day percentage change in stablecoin market capitalization.

This surge in liquidity typically precedes stronger price movements in Bitcoin and the broader crypto market.

Bitcoin’s Strong ‘Demand Zones’ Validates $117,000 Target 

Bitcoin’s recent price action aligns with this influx of liquidity. After surpassing the $100,000 mark in January 2025, BTC has established a strong foothold above key support levels—$98,500 and $104,985—demonstrating a healthy market structure and accumulation in these zones.

According to market analyst Tech Killa, these strong “demand zones” hint at a potential rally toward $117,000. With stablecoin inflows supporting price stability and buying pressure, Bitcoin’s upward trajectory appears well-supported.

Meanwhile, an X-based analyst anticipates that BTC could break past its current range and set new all-time highs, potentially exceeding the $168,600 “Balanced Top Target” predicted by on-chain models.

“The Bitcoin Balanced Price has been a reliable tool in helping identify a bear market bottom,” the analyst said, adding:

“I plotted 5x the Balanced Price, which results in a highly correlated cycle top indicator based on the past. Current Balanced Top Target- $168.6K.”

Institutional and Macroeconomic Tailwinds Boosts Bitcoin’s Record-High Scenario

Beyond stablecoin dynamics, institutional interest and macroeconomic factors are adding fuel to Bitcoin’s rally.

The Federal Reserve’s decision to maintain interest rates and growing speculation of rate cuts later in 2025 has bolstered risk-on sentiment across financial markets. Additionally, recent pro-crypto regulatory developments and increasing ETF increasing ETF adoption have strengthened Bitcoin’s legitimacy among institutional investors.

MicroStrategy’s continued Bitcoin accumulation strategy further underscores institutional confidence. Despite short-term volatility, the company’s latest purchases have reinforced the narrative that Bitcoin remains a preferred asset for long-term investment.