Stalled USDT Liquidity Threatens Bitcoin Price Further Growth

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,307,429,987,140	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,307,429,987,140

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-73.48	-0.11%	66,644.62	66,644.61	66,644.62

Price Change

Price Change %

Current Price

Bid Price

Offer

-73.48

-0.11%

66,644.62

66,644.61

66,644.62

High Price	Low Price	Open Price	Prev. Close	52 Week Range
66,875.00	66,271.00	66,727.42	66,718.10	24,900.00 - 73,835.57

High Price

Low Price

Open Price

Prev. Close

52 Week Range

66,875.00

66,271.00

66,727.42

66,718.10

24,900.00 - 73,835.57

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	15:25:19	0.000030	66,644.62	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

15:25:19

0.000030

66,644.62

USD

Price x Volume	Volume	Base Symbol	Related Pairs
182,877,535.61	2,746.58	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

182,877,535.61

2,746.58

Stalled USDT Liquidity Threatens Bitcoin Price Further Growth – Here’s Why

20/07/2024 1:00pm

NEWSBTC

The price of Bitcoin has maintained a recovery trajectory over the last week, gaining by a significant 16.25% to move briefly above the $67,000 price mark. Bitcoin investors are likely hopeful the asset will record more price gains and finally embark on a bull run following the halving event in April. However, Bitcoin’s price future gains are theorized to be tied to multiple factors including the liquidity of the stablecoin market. Why A Stagant USDT Liquidity Is Harmful To Bitcoin? In an X post on Friday, prominent on-chain analytics platform CryptoQuant emphasized the importance of stablecoin liquidity to an appreciation in Bitcoin’s price. CryptoQuant stated that for premier cryptocurrency to experience further price increases, there is a need for an equal rise in the stablecoin market shares. Related Reading: Coinbase Analysts Warn: Bitcoin’s Upward Trend Could Hit a Wall — Here’s Why For context, stablecoins refer to a type of cryptocurrency with a fixed value that is usually pegged to a reserve asset, usually the US dollar. These assets are combined valued at $163.56 billion and are critical to digital asset adoption for users with a fear of market volatility. In relation to Bitcoin’s price, CryptoQuant specifically references Tether (USDT), the largest stablecoin and third largest cryptocurrency with a market cap value of $113.78 billion, as a major influencing factor. The analytics team explains that USDT’s growth in the last month has been near 0% (1.03%), thus suggesting a slight 3.21% increase in Bitcoin’s price over the same period. In contrast, USDT’s market shares grew by 6.6% in March 2024, the same time in which Bitcoin rose from $61,168 to secure a new all-time high at $73,750. The relationship between both assets could stem from the prominent use of USDT in crypto trading. Thus, a higher level of USDT liquidity could allow traders to increase demand for risky assets, including Bitcoin. According to CryptoQuant, the Bitcoin market, therefore, requires a rapid rise in stablecoin liquidity to maintain its current positive price performance. Related Reading: Bitcoin Bollinger Bands Squeezing: Is BTC Ready For $140,000? Analyst Highlights “Dangerous” BTC Price Level In other news, amidst Bitcoin’s current price rally, popular crypto analyst Ali Martinez has warned that Bitcoin must maintain its price above the $66,385 level to avoid a massive liquidation of about $42.67 million. At the time of writing, Bitcoin continues to trade at $66,571 with a notable 4.65% gain in the last day. In a similar fashion, the asset’s daily trading volume is up by 38.08% and valued at $37.2 billion. Featured image from Big Stock Photo, chart from Tradingview.com

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BTCUSD Bitcoin