As the Bitcoin market has moved sideways in recent months, investors are awaiting a signal that the cryptocurrency will re-enter the market before regaining its bullish momentum from earlier this year. 📈🔍

CryptoQuant analyst Mac.D noted in a note published Wednesday that there is one notable signal: stablecoin liquidity. 💰

According to the analyst, the reason why Bitcoin cannot exceed new highs is the tightening monetary policy conditions in the USA. High interest rates around the world have negatively impacted liquidity across the economy, stablecoin liquidity and the total supply of stablecoins in circulation.

Stablecoins are crypto tokens pegged to fiat currency that are used as dollar equivalents in the crypto trading economy and that investors often hold to later purchase BTC.

However, Mac.D believes the market's next leg will also require more "facilitative monetary policy" in the US. Currently, markets predict that the Federal Reserve may only start lowering interest rates in September.

“Before we see these signals, Bitcoin will likely continue to move sideways or correct further and investors would be wise to approach the market from a long-term perspective,” said Mac.D.

So what do you think, what could be the key to revive Bitcoin's bull market? We are waiting your comments! 🚀👇