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Bitcoin struggles to rally as Tether’s USDT growth stagnates: CryptoQuant
The post Bitcoin struggles to rally as Tether’s USDT growth stagnates: CryptoQuant appeared on BitcoinEthereumNews.com. Demand for Bitcoin from large investors and permanent holders is on the rise. However, Bitcoin (BTC) has yet to see a major price rally since the growth in USDT’s market capitalization is slowing, according to CryptoQuant’s recent report. “Stablecoin liquidity has yet to recover its growth trajectory in order to underpin a price rally,” CryptoQuant stated. “The growth in the market capitalization of Tether’s USDT, a proxy for fresh liquidity in crypto markets, has continued to decelerate and is now growing at the slowest pace since February 11.” As noted, demand for Bitcoin among large-scale investors, often referred to as whales, and long-term holders is picking up speed. The monthly growth rate of demand from these groups is 4.4%, the quickest increase since April. In the last 30 days, these Bitcoin holders have added 70,000 BTC to their holdings, the most substantial accumulation since April. This reflects the 2020 pre-rally phase when large investors channeled about $1 billion into Bitcoin, according to the report. On-chain activity remains robust despite Bitcoin’s price exhibiting low volatility. Data suggests institutional investors are actively purchasing Bitcoin for their custody wallets. In addition, long-term holders have resumed accumulation. The report also notes that selling pressure on Bitcoin has decreased as traders have largely completed profit-taking. With unrealized profits at a low of 3%, down from 69% in early March, the expectation is for reduced selling pressure moving forward. Concurrently, Ethereum (ETH) has witnessed a spike in demand, particularly after the approval of spot Ethereum ETFs in the US, with daily purchases by permanent holders averaging 40,000 ETH since May 20. Despite the optimistic signs of increased institutional buying and the launch of spot ETFs, CryptoQuant’s report suggests that the sluggish growth in stablecoin liquidity may hinder the prospects of a major Bitcoin price rally in…
The post Bitcoin struggles to rally as Tether’s USDT growth stagnates: CryptoQuant appeared on BitcoinEthereumNews.com.
Demand for Bitcoin from large investors and permanent holders is on the rise. However, Bitcoin (BTC) has yet to see a major price rally since the growth in USDT’s market capitalization is slowing, according to CryptoQuant’s recent report. “Stablecoin liquidity has yet to recover its growth trajectory in order to underpin a price rally,” CryptoQuant stated. “The growth in the market capitalization of Tether’s USDT, a proxy for fresh liquidity in crypto markets, has continued to decelerate and is now growing at the slowest pace since February 11.” As noted, demand for Bitcoin among large-scale investors, often referred to as whales, and long-term holders is picking up speed. The monthly growth rate of demand from these groups is 4.4%, the quickest increase since April. In the last 30 days, these Bitcoin holders have added 70,000 BTC to their holdings, the most substantial accumulation since April. This reflects the 2020 pre-rally phase when large investors channeled about $1 billion into Bitcoin, according to the report. On-chain activity remains robust despite Bitcoin’s price exhibiting low volatility. Data suggests institutional investors are actively purchasing Bitcoin for their custody wallets. In addition, long-term holders have resumed accumulation. The report also notes that selling pressure on Bitcoin has decreased as traders have largely completed profit-taking. With unrealized profits at a low of 3%, down from 69% in early March, the expectation is for reduced selling pressure moving forward. Concurrently, Ethereum (ETH) has witnessed a spike in demand, particularly after the approval of spot Ethereum ETFs in the US, with daily purchases by permanent holders averaging 40,000 ETH since May 20. Despite the optimistic signs of increased institutional buying and the launch of spot ETFs, CryptoQuant’s report suggests that the sluggish growth in stablecoin liquidity may hinder the prospects of a major Bitcoin price rally in…
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