Data: A decline in government bond yields will drive an increase in stablecoin supply, thereby prompting a new round of BTC rise

Cryptocurrency analyst Arndxt recently expressed the view that the most crucial indicator in the current cryptocurrency field is the total supply of stablecoins, and pointed out that this indicator is showing some positive signals.

Since Bitcoin broke its historical high in March, the supplies of Tether (USDT), USD Coin (USDC) and DAI have increased by 14%, 13% and 12% respectively, while PayPal USD (PYUSD)'s supply has surged by 300%, mainly on Solana network. However, due to a decrease in BUSD and USDP's supply by 17% and 42%, overall stablecoin supply only grew by 2%. Arndxt predicts that as treasury yields fall, investors may allocate more funds into risk assets including cryptocurrencies, further driving up stablecoin supplies. He believes if this trend continues or accelerates over next few months, total stablecoin supply could break its historical high which might indicate an upcoming rise for Bitcoin and entire crypto market.