Ansem Highlights Stablecoin Reserves: Crypto Ready for a Rally?

Stablecoin reserves are back in the spotlight after crypto traders Ansem highlighting the large amount of liquidity that remains outside of risky assets.

Funds stored in stablecoins can become a source of crypto buying power if the owner decides to repurchase Bitcoin, Ethereum, or altcoins.

This view is interesting because stablecoins currently hold a large share in the digital asset ecosystem.

CoinGecko data shows the market capitalization of all stablecoins is around US$302 billion, or about 13.3% of the total crypto market capitalization.

USDT and USDC remain the two dominant players with capitalizations of around US$183 billion and US$72 billion, respectively.

However, what is the magnitude? stablecoin proposal automatically becomes a sign that rally in crypto is already near?

Key Takeaways

• Ansem sees the large stablecoin reserves as a potential source of liquidity that could flow back into crypto assets.

• USDT and USDC provide significant buying power, but the existence of stablecoins alone does not guarantee a Bitcoin or altcoin rally.

• Investors need to look at the direction of fund flows, volume, Bitcoin dominance, and crypto market sentiment before concluding that a rally has begun.

Why Is Ansem Highlighting Stablecoin Proposals?

 

Ansem believes that much capital is still in the form of stablecoins and has not fully moved to risky assets.

In his view, some of that liquidity has the potential to circulate back into the market when market players feel conditions are attractive enough to take risks.

This condition is often referred to as dry powder crypto, namely capital that is relatively liquid and can be used to purchase assets when opportunities arise.

Unlike funds that have already been fully diverted to the banking system, stablecoins remain within the blockchain infrastructure, making them technically easier to transfer to other crypto assets.

But there is an important difference between available capital and capital that actually enters the market. 

As long as USDT or USDC is only stored in a wallet, exchange, or protocolDeFi does not necessarily mean that there will be an inflow of crypto capital into Bitcoin or altcoins.

Read Also: Buy USDT: How Much Can You Start With?

Why Are Stablecoins Important for Crypto Liquidity?

Stablecoins serve as one of the primary transaction channels in the crypto market. USDT and USDC allow traders to move value without having to constantly exit the blockchain ecosystem and convert it to fiat currency.

The size of the role of both can be seen from the structure of exchange trading.

CoinGecko's spot CEX report shows that 97.7% of stablecoin-based trading pairs on the 12 centralized exchanges analyzed use USDT or USDC as their underlying asset.

This means an increase in crypto liquidity and stablecoins provide large transaction capacity.

When some of those funds move from stablecoins to BTC, ETH, or other assets, demand can increase rapidly.

Read Also: How to Stake USDC on Bittime in 4 Easy Steps

Could Stablecoin Reserves Trigger a Bitcoin Rally?

In theory, the opportunity is there. When traders who previously favored stablecoins begin to increase their risk exposure, Bitcoin is usually one of the first assets they look at due to its liquidity and large market capitalization.

However, the size of stablecoin reserves cannot be read as a standalone buy signal.

Bitcoin still needs real demand, increased trading volume, and conditions macro and market sentiment which supports making the rally more sustainable.

This is the reason why stablecoins are more appropriately viewed as available fuel, not a machine that is already running.

The size of the tank does not guarantee that the vehicle will move if the investor does not have a reason to start buying.

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How Can Altcoins Be Impacted?

If Bitcoin strengthens first and then stabilizes, market attention could shift to smaller-cap assets.

This is a condition that can open up opportunities for this to happen.altcoin rally.

Ansem believes the market doesn't always need a major coin to set a new price record before capital rotation occurs.

Capital can shift to altcoins, DeFi, or other previously neglected crypto sectors if traders see more attractive risk-reward potential.

However, rotation does not always occur evenly. In conditions of thin liquidity, small-cap altcoins can experience even higher volatility, so potential gains always come with greater downside risk.

Read Also: USDT vs USDC Differences: A Comprehensive Guide

What Indicators Should Investors Monitor?

Instead of just looking at the number of stablecoins, investors can pay attention to movement of the capital. 

Stablecoins starting to flow into exchanges, increasing pair volumes BTC/USDT or ETH/USDT, as well as growth in spot activity could provide additional context as to whether buying power is starting to be exercised.

Bitcoin Dominance| Source: Coingecko

Bitcoin dominance is also important.

If Bitcoin strengthens but its dominance then declines alongside an increase in altcoin volume, this could signal that capital rotation is starting to widen.

Investors also need to distinguish between the increase in stablecoin supply and the funds actually used for investment.

Stablecoins have other functions such as payments, remittances, settlements, lending, and DeFi activities, so not all of their capitalization growth will end up in Bitcoin or altcoin purchases.

Circle, for example, states that USDC is also used as blockchain payment and transaction infrastructure, with approximately US$71.8 billion of USDC in circulation at the end of July 2026.

Read Also:Altcoin Season 2026: Is the Altcoin Season About to Begin?

So, Is the Crypto Market Ready for a Rally?

Large stablecoin reserves provide an attractive liquidity foundation for crypto market outlook. 

Stablecoin Market Cap | Sumber: Coingecko

With around US$302 billion in stablecoin capitalization, there is theoretically enormous buying power within the ecosystem.

But Ansem's view is better-read as potential scenarios, not certainty that prices will soon soar.

To make the rally more convincing, investors need to see confirmation from volume, stablecoin flows, spot demand, Bitcoin dominance, macro conditions, and altcoin movements.

In other words, the capital may already be available. The next question is no longer just “how many stablecoins are there?”, but when will the capital owner start to dare to take risks?

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FAQ

What is the relationship between stablecoin proposals and crypto prices?

Stablecoin reserves represent the amount of liquidity that can potentially be used to purchase crypto assets. If funds begin to shift to Bitcoin or altcoins, demand may increase, but there's no guarantee that such a shift will occur.

What is dry powder crypto?

Crypto dry powder is liquid capital that is readily available and ready to be used when investors find an opportunity. In the crypto context, USDT and USDC are often considered a form of dry powder because they are relatively easy to exchange for other assets.

Does large stablecoin reserves mean Bitcoin will rise?

No. Stablecoin reserves only demonstrate buying power. A Bitcoin rally still requires actual demand, volume, positive sentiment, and supportive market conditions.

Can altcoins also rise if stablecoins enter the market?

Yes, especially if capital starts moving from Bitcoin to higher-risk assets. However, altcoin rallies don't always happen, and altcoin volatility is generally higher.

What is the most dominant stablecoin currently?

USDT and USDC are the two largest stablecoins. CoinGecko currently lists USDT's market capitalization at around US$183 billion and USDC's at around US$72 billion.