Bitcoin's price stagnation since its peak in March is attributed to the tightening U.S. monetary policy, which has led to a decrease in stablecoin supply, say CryptoQuant analysts. The Federal Reserve's decision to raise interest rates in early 2022 led to a decline in the overall stablecoin supply. However, for Bitcoin to rally, an increase in stablecoin liquidity and circulating supply is necessary, requiring a more accommodating U.S. monetary policy.

The stablecoin market capitalization, currently at $161 billion, has been steadily increasing over the past few months, representing around 7% of the total crypto market. Tether remains the market leader with a market share of almost 70%, and its supply is at an all-time high of $112 billion. Circle and Maker's DAI follow with market shares of around 20% and just over 3%, respectively.

The future looks promising for Bitcoin and the stablecoin ecosystem, with the Federal Reserve expected to lower interest rates in September, given positive economic data. This could make high-risk assets like crypto more attractive and potentially trigger Bitcoin's next bull rally.