Stablecoins play a far more complex role in the crypto market than most people imagine. They are not just a medium of exchange but act more like the "blood supply system" of the entire market, controlling the flow of funds and the market's pulse.

From a liquidity perspective, every time you use USDT to buy ETH, you are essentially injecting liquidity into the market. This seemingly simple transaction can directly impact market depth and price stability. When institutional investors make large purchases of small-cap coins using USDC, the entire order book is like being pressed with an "accelerator"—leverage amplifies market volatility.

Even more interestingly, changes in stablecoin supply often precede market trends. When the USDT and USDC markets suddenly contract, other cryptocurrencies face not only capital outflows but also the risk of a liquidity crunch across the entire market. This chain reaction can lead to sharp price drops, making even seemingly resilient coins vulnerable.

However, it is important to note that this analytical framework has its limitations. Sudden regulatory policy shifts, black swan events, or exchange system failures can instantly disrupt the "regulatory" capacity of stablecoins. The market is always more complex than we anticipate; simply tracking the flow of USDT and USDC is only the first step in risk management, not the whole picture.