Bitcoin Gains Could Be Held Back by Stablecoin Liquidity, Says CryptoQuant

Despite cash still flowing into Market intelligence firm CryptoQuant told And in a Wednesday note, the firm added: “While there is some positive movement in the stablecoin market capitalization, USDT’s market cap monthly growth is still near zero, still dampening the potential for a more significant Bitcoin price rally.”StablecoinsWithout enough stablecoin liquidity flowing around the crypto ecosystem, there is likely to be less Bitcoin buying and selling, in CryptoQuant’s view—hence the potentially stunted price of the asset, per its analysis.Bitcoin is now trading for $64,360 per coin, CoinGecko data The asset had been on a roll since the U.S. Securities and Exchange Commission in January Cash then began to flow out of the ETFs months later as investors lost interest in risk assets like Bitcoin thanks to various macro factors, including geopolitical conflicts and fear that the Federal Reserve would continue to keep interest rates high. The But the appetite for Bitcoin and crypto is back: Over $422 million flowed into the funds on Tuesday alone, But will Bitcoin ETF demand keep the bull run growing if there isn’t enough stablecoin liquidity to support such growth? That’s the burning question raised by CryptoQuant.Edited by Andrew HaywardDisclaimerThe views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.