CryptoQuant Analyst Explained: This Is Required for Bitcoin to Load!

Latest data revealed that stablecoin liquidity is required for Bitcoin, which is in decline, to rise. 

A writer from on-chain data and analysis account CryptoQuant explained why Bitcoin has not experienced further rises and the necessary conditions for the rise.

The analyst made the following statements in his statement:

Bitcoin has been moving sideways since reaching a new high in March this year. The main reason why Bitcoin does not rise further is the tight monetary policy implemented in the USA since March 2022.

Stating that as a result of this, the total circulating supply of stablecoins has decreased since the USA increased interest rates, CryptoQuant analyst stated that there are two main reasons why Bitcoin's price increased last year. 

Emphasizing that the first is the expectation that interest rates will decrease and the second is that fiscal policy, unlike monetary policy, will continue to bring liquidity to the market, the analyst conveyed his conclusion with the following sentences:

For Bitcoin to take off significantly, we need to see stablecoin liquidity and circulating supply increase through looser monetary policy in the US. Unless we see these signals, Bitcoin will likely trend sideways or correct further, and investors would be wise to approach the market with a long-term perspective.