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Table of Contents:
A Few Words About Stablecoins
Why Stablecoins Are Called the Fuel of a Bull Run
Why Tracking Stablecoin Issuance Matters
Final Thoughts
A Few Words About Stablecoins
Why Stablecoins Are Called the Fuel of a Bull Run
Why Tracking Stablecoin Issuance Matters
Final Thoughts
In the crypto community, you can often hear the popular phrase “stablecoins are the fuel of a bull run.” However, not everyone understands how this actually works.
The BitOK editorial team took a closer look at the topic. Below, we explain why stablecoins have become the “fuel” of a bull run and how exactly they support positive market momentum.
The BitOK editorial team took a closer look at the topic. Below, we explain why stablecoins have become the “fuel” of a bull run and how exactly they support positive market momentum.
A Few Words About Stablecoins
A Few Words About Stablecoins
Before moving on to the idea of “fuel,” it’s worth revisiting the nature and key features of stablecoins. This is necessary to fully understand the topic.
Stablecoins are digital assets that emerged as a response to the high volatility of traditional cryptocurrencies, such as Bitcoin. Prices of such assets can rise or fall sharply in a short period of time. As a result, they are not suitable for everyday payments and are not always ideal for storing savings. For example, during bear market phases, Bitcoin has repeatedly dropped by more than 70%.
The concept of stablecoins is reflected directly in their name. Their price is designed to remain stable. Let’s take the most popular and highly capitalized stablecoin as an example — Tether (USDT). The project was launched back in 2014, which is considered a long time ago by crypto industry standards. USDT is pegged to the US dollar at a 1:1 ratio. Information about the reserves backing each token is published on Tether’s official website.
Now let’s visually compare the price movements of Bitcoin and USDT. While Bitcoin lost around 65% of its value between March and November 2022, Tether continued trading at $1. Likewise, during Bitcoin’s 69% rise between April and October 2025, USDT was still trading at $1 — but that is a different story. The key point is that regardless of broader crypto market conditions, which Bitcoin reacts to with sharp price swings, Tether and other stablecoins have become an “island” of stability in the digital asset market.
Stablecoins are digital assets that emerged as a response to the high volatility of traditional cryptocurrencies, such as Bitcoin. Prices of such assets can rise or fall sharply in a short period of time. As a result, they are not suitable for everyday payments and are not always ideal for storing savings. For example, during bear market phases, Bitcoin has repeatedly dropped by more than 70%.
The concept of stablecoins is reflected directly in their name. Their price is designed to remain stable. Let’s take the most popular and highly capitalized stablecoin as an example — Tether (USDT). The project was launched back in 2014, which is considered a long time ago by crypto industry standards. USDT is pegged to the US dollar at a 1:1 ratio. Information about the reserves backing each token is published on Tether’s official website.
Now let’s visually compare the price movements of Bitcoin and USDT. While Bitcoin lost around 65% of its value between March and November 2022, Tether continued trading at $1. Likewise, during Bitcoin’s 69% rise between April and October 2025, USDT was still trading at $1 — but that is a different story. The key point is that regardless of broader crypto market conditions, which Bitcoin reacts to with sharp price swings, Tether and other stablecoins have become an “island” of stability in the digital asset market.
Colored line — Bitcoin price, horizontal blue line — Tether price. Source: TradingView.
This means that stablecoins are primarily about maintaining a stable cryptocurrency price.
In the crypto industry, such assets perform two important functions:
This means that stablecoins are primarily about maintaining a stable cryptocurrency price.
In the crypto industry, such assets perform two important functions:
- A gateway into the crypto market. Purchasing a stablecoin is one of the simplest ways to enter the crypto space. Not all cryptocurrencies can be bought directly with fiat currency, but many of them can be exchanged for stablecoins.
- A tool for waiting out "dark times" and re-entering the market. Suppose we know that the price of our favorite highly volatile cryptocurrency is likely to decline in the near future. To avoid losses, funds can be moved into an asset with a stable price, such as a stablecoin. Once the market stabilizes, it becomes possible to return.
At this point, we can draw some intermediate conclusions. Stablecoins act as an “antidote” to the high volatility of traditional cryptocurrencies. They are extremely useful within the crypto industry and in high demand. This is also reflected in 24-hour trading volume data. By this metric, Tether outperforms Bitcoin by more than two times, while another dollar-pegged stablecoin, USD Coin (USDC), ranks fourth.
Top 5 cryptocurrencies by 24-hour trading volume. Source: CoinMarketCap.
Unfortunately, the convenience of stablecoins has also attracted scammers. According to BitOK estimates, around 85% of illicit crypto transactions in 2025 involved stablecoins. For comparison, just five years earlier, stablecoins accounted for only 15% of the shadow crypto transfer market. Cryptocurrency linked to suspicious activity is flagged, and future transactions involving such assets may lead to account freezes or blocks. To avoid these issues, use BitOK tools to quickly check the cleanliness of crypto assets.
Now we can move on to “fuel.”
Now we can move on to “fuel.”
Why Stablecoins Are Called the Fuel of a Bull Run
Why Stablecoins Are Called the Fuel of a Bull Run
Stablecoins are called the fuel of a bull run for a simple reason: without them, the market cannot “start moving.” They play the same role as gasoline or diesel fuel does for a car.
A vehicle may be perfect, but if the tank is empty, it stays where it is. The crypto market works in a similar way. Prices may be ready to rise and sentiment may be positive, but without money inside the system, movement is impossible.
Stablecoins represent liquidity that is already present within the crypto market. They can be compared to a “full tank of fuel” that has not yet been used.
A vehicle may be perfect, but if the tank is empty, it stays where it is. The crypto market works in a similar way. Prices may be ready to rise and sentiment may be positive, but without money inside the system, movement is impossible.
Stablecoins represent liquidity that is already present within the crypto market. They can be compared to a “full tank of fuel” that has not yet been used.
The process usually looks like this:
- funds enter the crypto market in the form of stablecoins;
- stablecoins sit on exchanges or in DeFi protocols;
- the market waits for a signal to begin moving;
- when growth starts, this “fuel is burned” and converted into asset purchases.
The more stablecoins there are within the system, the more fuel is available for growth. The market can accelerate faster and move for longer because it has a reserve of liquidity.
If the amount of stablecoins is low, the situation is reversed. It’s like driving with an almost empty tank:
If the amount of stablecoins is low, the situation is reversed. It’s like driving with an almost empty tank:
- any acceleration ends quickly;
- price growth becomes sharp and unstable;
- prices easily reverse at the first obstacle.
That’s why analysts look not only at prices, but also at stablecoin volumes. Growth in this segment indicates that the “tank is filling up.” A bull run begins when the market presses the gas pedal and starts “burning this fuel.” The chart below illustrates this relationship:
The chart shows how the ratio of stablecoins (blue line) to the Bitcoin price (black line) has changed over time. During periods of Bitcoin growth, the amount of stablecoins held on exchanges declines. Source: CryptoQuant.
Why Tracking Stablecoin Issuance Matters
Why Tracking Stablecoin Issuance Matters
Ahead of bullish market moves, companies that issue stablecoins often “print” new batches of tokens. This allows them to meet a potential increase in demand in advance.
The chart below shows how the circulating supply of USDT has changed over time. Source: Glassnode.
Monitoring the actions of stablecoin issuers is important because these major players often have access to better information and understand market conditions earlier than most retail participants. In many cases, they recognize when the market is approaching another bull run.
Monitoring the actions of stablecoin issuers is important because these major players often have access to better information and understand market conditions earlier than most retail participants. In many cases, they recognize when the market is approaching another bull run.
Final Thoughts
Final Thoughts
Stablecoins are called the “fuel” of a bull run because this category of assets is most commonly used to enter the market. Issuers prepare new token supply in advance of expected growth.
Purchasing power in the crypto market is formed through stablecoins. Without them, sustained price growth is impossible. The size of the segment, how liquidity is distributed, and the speed at which it circulates make it possible to assess not only the current state of the market, but also its potential to transition into a bullish phase.
And to avoid dealing with questionable crypto assets, make sure to use BitOK tools.
Purchasing power in the crypto market is formed through stablecoins. Without them, sustained price growth is impossible. The size of the segment, how liquidity is distributed, and the speed at which it circulates make it possible to assess not only the current state of the market, but also its potential to transition into a bullish phase.
And to avoid dealing with questionable crypto assets, make sure to use BitOK tools.
