Bitcoin Soars on ETF Frenzy—While Stablecoins Sit on the Sidelines

Institutional demand for spot Bitcoin ETFs keeps pushing prices upward—even as stablecoin reserves stagnate at worryingly low levels. The market’s sending mixed signals: Wall Street’s piling in, but retail traders? They’re stuck watching from the cheap seats with dwindling firepower.

Meanwhile, crypto’s favorite ’stable’ crutch—Tether’s USDT—hasn’t seen meaningful inflows since the last bull run. Funny how the ’safe’ money always shows up late to the party.

Stablecoin supply ratio increased sharply throughout April. SSR climbed from 12.8 at the start of the month to 15.9 by the end, returning to levels last seen in February. This increase reflected a weakening in stablecoin purchasing power relative to Bitcoin’s market capitalization. A high SSR historically meant a reduced ability for stablecoin flows alone to sustain large rallies. The stagnant SSR in April confirmed that the rally above $90,000 was not built on strong stablecoin inflows or new speculative demand from sidelined cash.

Despite this backdrop, Bitcoin’s price remained stable between $91,000 and $95,000 across April, closing the month NEAR $95,000. Price stability in the absence of strong stablecoin support points to underlying strength elsewhere in the market. Without significant material inflows of stablecoins, Bitcoin’s resilience likely stemmed from increased ETF inflows and long-term holders reducing their sell pressure.

The combined behavior of ESR, SSR, and Bitcoin’s spot price reveals a supply-constrained environment rather than one fueled by new demand. A falling ESR limited the capacity for stablecoins to drive prices to the upside.

A persistently high SSR showed that the broader stablecoin base was not expanding fast enough to lift Bitcoin’s price materially. However, BTC kept rallying, suggesting that the support structure shifted toward institutions, ETFs, and the withdrawal of sell-side liquidity rather than the arrival of new buyers.

No notable increase in stablecoin exchange inflows occurred during April. Similarly, the SSR did not break lower, which would have indicated expanding stablecoin-driven buying power. Retail demand through stablecoins remained absent. Bitcoin’s resilience was therefore supported by factors external to stablecoin liquidity, with ETF allocations and passive spot accumulation doing the heavy lifting.

The combination of low ESR and high SSR implies that Bitcoin’s price was mainly supported by existing spot demand, ETF inflows, or longer-term holders reducing selling, rather than an influx of new stablecoin liquidity typically seen in strong retail-driven rallies.

There were no signs of a substantial short-term inflow of new capital from stablecoins during April. If Bitcoin attempted to break higher from $95,000, the current structure would require either increased external buying, such as additional ETF flows or direct fiat inflows, or a sudden spike in stablecoin deposits to exchanges.