Crypto analytics firm Santiment says that the dwindling supply of stablecoins may be a sign that a massive Bitcoin breakout is on the horizon.

According to the market intelligence firm, the circulating supply of Tether (USDT) and USD Coin (USDC), the two biggest cryptocurrency stablecoins by market cap, has been dramatically decreasing since May 2022.

Santiment says that the volume of these two assets continues to decline even as the price of Bitcoin rises, which in the past has foreshadowed parabolic BTC rallies, specifically in July 2021 right before the king crypto went from the $29,000 level all the way to $69,000.

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