USDT and USDC Drive Bitcoin’s Rally Past $97K as Stablecoin Liquidity Expands

Bitcoin’s price surged past $97,000 on May 2, 2025, fueled by a significant influx of liquidity into the stablecoin market. Tether (USDT) and Circle’s USDC led this expansion, adding $2.5 billion and $1.2 billion to their market caps, respectively. The broader stablecoin sector grew by 2.2% in April, reaching a total capitalization of $238 billion. This liquidity surge is seen as a signal of renewed institutional interest in the cryptocurrency markets, with analysts pointing to stablecoins as a key driver of Bitcoin’s latest rally. The increased market activity suggests growing confidence among investors, further solidifying Bitcoin’s position as a leading digital asset in the global financial landscape.

Bitcoin Surges Past $97K Amid Stablecoin Liquidity Influx

Bitcoin breached the $97,000 threshold on Friday, fueled by a $5 billion expansion in the stablecoin market. Tether (USDT) and Circle’s USDC led the charge, adding $2.5 billion and $1.2 billion to their market caps respectively. The broader stablecoin sector grew 2.2% in April, reaching $238 billion in total capitalization.

The liquidity surge signals renewed institutional interest in crypto markets. Market observers note stablecoin inflows often precede bullish momentum for Bitcoin, with the $100,000 psychological barrier now in sight. The rally comes amid growing adoption of crypto as a hedge against traditional market volatility.

Indian Police Recover $3,000 in USDT for Crypto Scam Victim Through International Cooperation

Indian authorities successfully recovered $3,000 worth of USDT for a victim of a cryptocurrency investment scam, showcasing rare restitution in such cases. The police traced the funds after the victim reported the fraud on February 2, 2024, following promises of high returns on a 24,275 USDT ($20.39 lakh) investment.

Legal intervention and cross-border collaboration enabled freezing and reimbursement—a notable win against crypto fraud. The case highlights both the risks of unverified investment schemes and law enforcement’s growing capability to follow digital asset trails.

PumpFun Offloads More than $16.8M in SOL

PumpFun, a prominent platform for meme coin creation and trading on the Solana blockchain, has resumed its aggressive selling of SOL. Four newly created wallets linked to PumpFun withdrew 111,993 SOL from Kraken, converting the tokens into $16.89 million worth of USDC and USDT at an average price of $150.8 per SOL.

Onchain Lens reported the movement, noting that PumpFun has now sent a total of 118,717 SOL ($17.86 million) to Kraken. The latest transaction involved an additional 13,484 SOL, signaling continued sell-side pressure.