Crypto Market Poised for Next Move as Stablecoin Reserves Surge to Multi-Year Highs
Stablecoin reserves on centralized exchanges have reached their highest point in years, a strong signal that traders may be preparing to re-enter the market in force. Rather than fleeing the space, investors appear to be waiting for a clear breakout—or breakdown—before deploying capital.
Bitcoin hovered just above $105,000 on Wednesday, continuing a modest recovery. Ethereum, XRP, Dogecoin, and Cardano each posted gains of less than 1%, while total market capitalization slipped 1.8%, reflecting market hesitation.
“The market feels coiled,” said Nick Ruck, director at LVRG Research. “We’re not seeing panic, we’re seeing patience. Institutions are still moving deeper into the space, and that reinforces the long-term case for Bitcoin.”
According to Fineqia analyst Matteo Greco, Bitcoin ended last week down 3.1%, closing near $105,700 after hitting $109,000 the week prior. The dip was accompanied by $150 million in net outflows from spot BTC ETFs—the first negative weekly print in over a month.
Meanwhile, BTC reserves on exchanges continue to fall, indicating a strong holding pattern among long-term investors. In contrast, stablecoin balances have surged—an indicator Greco sees as bullish. “This isn’t capital leaving the ecosystem,” he said. “It’s capital waiting to be put to work.”
Greco also noted that Bitcoin’s MVRV ratio stands at 2.2, well below the 3.7 mark typically associated with cycle peaks. “That suggests we’re still in the latter half of the bull market, not the end.”
Bitunix analysts flagged $105,000 as a key technical level for BTC in the short term, warning that a break below $102,700 could invite additional downside. However, they also pointed to dovish commentary from the Federal Reserve as a tailwind for risk assets.
With Bitcoin dominance flat and stablecoin reserves rising, some analysts believe a rotation into altcoins may soon follow—potentially signaling the final leg of the current cycle.
“Smart money is preparing,” Ruck added. “This may be the calm before the next major wave.”
