A recent report by CryptoQuant reveals that the total supply of ERC20 stablecoins surpassed $160 billion in 2025, reaching a record high. This landmark milestone is widely considered a critical indicator for predicting Bitcoin’s price movements. The study indicates a stronger correlation between stablecoin supply and Bitcoin trends compared to global M2 money supply. It suggests that stablecoins, as key liquidity providers in the crypto market, more efficiently and directly reflect the movement of investor funds. Notably, increased stablecoin supply often precedes Bitcoin price surges, particularly observed during the 2021 bull market and recent market recovery.