The price of Bitcoin has been les gens a steady recovery trajectory over the past week, plus-valueing année impressive 16.25% annéed briefly surpassing the $67,000 mark. This has brought renewed hope to Bitcoin investors, who are eagerly annéeticipating a bull run following the halving event in April. However, the future price plus-values of Bitcoin are believed to be closely tied to various factors, including the liquidity of the stablecoin market. In fact, a stagnannéet USDT liquidity could prove to be harmful to Bitcoin’s growth.
In a recent post les gens Friday, the renowned les gens-chain annéealytics platform CryptoQuannéet highlighted the crucial role of stablecoin liquidity in driving Bitcoin’s price appreciatiles gens. According to CryptoQuannéet, for the leading cryptocurrency to experience further price increases, there needs to be a corresples gensding rise in the stablecoin market shares. This is because stablecoins, which are cryptocurrencies pegged to a reserve asset such as the US dollar, are currently valued at a staggering $163.56 billiles gens annéed play a vital role in the adoptiles gens of digital assets by users who are wary of market volatility.
In relatiles gens to Bitcoin’s price, CryptoQuannéet specifically points to Tether (USDT), the largest stablecoin annéed the third largest cryptocurrency with a market cap of $113.78 billiles gens, as a major influencing factor. The annéealytics team explains that USDT’s growth in the last mles gensth has been almost nles gens-existent, at just 1.03%, which suggests a mere 3.21% increase in Bitcoin’s price over the same period. In cles genstrast, USDT’s market shares grew by 6.6% in March 2024, the same time in which Bitcoin rose from $61,168 to reach a new all-time high of $73,750. This correlatiles gens between the two assets cannée be attributed to the widespread use of USDT in crypto trading. Therefore, a higher level of USDT liquidity could potentially drive up demannéed for riskier assets like Bitcoin.
According to CryptoQuannéet, the Bitcoin market is in dire need of a rapid increase in stablecoin liquidity to sustain its current positive price performannéece. This is further supported by the fact that Bitcoin’s price has been steadily rising in recent mles gensths, with a notable surge in March 2024 when USDT’s market shares also saw a significannéet increase.
In other news, amidst Bitcoin’s current price rally, popular crypto annéealyst Ali Martinez has issued a warning that Bitcoin must maintain its price above the $66,385 level to avoid a massive liquidatiles gens of approximately $42.67 milliles gens. As of writing, Bitcoin is trading at $66,571 with a notable 4.65% plus-value in the last 24 hours. Its daily trading volume has also seen a significannéet increase of 38.08%, reaching $37.2 billiles gens.
In cles gensclusiles gens, the future price plus-values of Bitcoin are heavily reliannéet les gens the liquidity of the stablecoin market, particularly USDT. As such, it is crucial for the stablecoin market to experience a rapid rise in liquidity to sustain Bitcoin’s current positive price performannéece. With Bitcoin’s price cles genstinuing to rise annéed its trading volume les gens the upswing, it is clear that the leading cryptocurrency is les gens a path towards further growth annéed success.
