The post Crypto in 2026: Why stablecoins are THE trend to watch appeared on BitcoinEthereumNews.com.

Journalist Posted: December 29, 2025 The last week of 2025 has officially kicked off. Looking back, it’s been a tough year for the crypto market. The TOTAL market cap is still down 7% from its $3.15 trillion peak, with 2025 clearly closing on a cautious note as the market heads into the “New Year.” One notable exception, however, has been stablecoins. From a technical standpoint, the stablecoin market cap (STABLE.C) is up 25% YTD, adding $60 billion over the year to reach a total market cap of $315 billion. Source: TradingView (STABLE.C) In short, the market has seen a clear divergence in flows. As 2025 wraps up, stablecoins have once again acted as the market’s “safe haven”, absorbing capital while the rest of crypto dealt with elevated volatility, something the market has been exposed to for most of the year. But volatility isn’t going away just yet. The market is heading into another macro-heavy week, one that could test key levels across risk assets. In that context, are stablecoin flows the key signals investors should be watching? Stablecoin stagnation signals liquidity hesitation Liquidity remains one of the main drivers of the crypto market. Lately, the U.S. has seen a steady stream of liquidity support from the Federal Reserve, via repo operations, Treasury sell-offs, and interest rate cuts. Yet, price action across risk assets has stayed muted. Notably, the chart below shows why. Even though liquidity is coming in, it’s not being deployed. Stablecoin inflows to exchanges have dropped sharply since September, falling from around $136 billion to roughly $70 billion. Source: CryptoQuant Put simply, stablecoin flows into exchanges are down roughly 50%. From a technical angle, that’s a signal of caution. When inflows fall like this, it means capital is staying on the sidelines instead of moving into Bitcoin [BTC]…

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Filed under: News - @ December 29, 2025 5:26 pm