I would appreciate any insight on the current crypto market situation. Also, I'm curious if there's any way to trade or hold stablecoins and enjoy passive income instead of just holding as I am now.
The insight is investment, rather than trading. And with investment, you will less care of next market movement.
Use your capital to invest in bitcoin by DCA your entries and exits will make your profit target more achievable and with less time spent for it.
Warning is about your practice of holding stable coins and wait for opportunities. Stable coins are not stable and they can lose pegs too. So you will have risk of losing your capital by storing it in stable coins.
Store your capital in Bitcoin, and fiat currency, avoid stable coins. Because fiat currencies are better and safer than stable coins but they are both worse than Bitcoin, the best.
Most of stable coins can be frozen, even in your wallets.