Bitcoin price now depends on stablecoins more than retail demand, says MEXC COO

Tracy Jin from MEXC predicts that $1 billion in stablecoin inflows could boost Bitcoin’s price by 8-10 percent.

Bitcoin (BTC) is increasingly benefiting from stablecoin-driven liquidity growth. On Wednesday, April 30, Tracy Jin, COO of crypto exchange MEXC, shared her insights with crypto.news on the growing role of stablecoins in the Bitcoin ecosystem.

“Fiat inflows converted into Tether and Circle are steadily flowing into Bitcoin, and that remains the primary driver behind its price growth this year. Right now, every additional billion in stablecoins tends to push Bitcoin up by 8 to 10 percent,” Tracy Jin of MEXC.

Jin explained that despite macroeconomic uncertainty, demand for stablecoins remains high. The total stablecoin market capitalization has grown by over $38 billion year-to-date and is expected to continue rising. This added liquidity, in turn, supports increased demand for Bitcoin.

“Despite the recent volatile market landscape, stablecoin demand has remained resilient, growing over $38 billion year-to-date. Stablecoins now account for 1% of the global M2 USD money supply, processing over $33T in volume in the last year, including $2.8T in the last month alone.”

Stablecoins could be worth $2 trillion by 2026

One of the key drivers of this growth is the role stablecoins play in bridging traditional financial markets and the crypto ecosystem. They are particularly vital for crypto investors, especially during periods of heightened volatility. According to Jin, this utility could help propel the stablecoin market cap to over $2 trillion by 2026.

“With many sovereign banks and corporations exploring stablecoin issuance, particularly in other fiat currencies, and governments prioritizing regulation clarity, the stablecoin market cap could exceed $2 trillion by 2026 as they continue to drive the evolution of financial services, serving as a hedge against volatility and a launchpad for broader capital deployment,” Tracy Jin of MEXC.

This would represent a 200% increase from its current level of $241 billion. For Bitcoin, this translates into a significant boost in available liquidity, likely placing upward pressure on its price.