๐Hey there, Bitcoin enthusiasts!๐
๐CryptoQuant analysts have shed light on why Bitcoin's price has been stagnant since its March peak. The culprit? Tight U.S. monetary policy. It's been reducing the stablecoin supply since March 2022.
๐The overall stablecoin supply started to dip when the Federal Reserve began raising interest rates in early 2022. This has put a damper on Bitcoin's rally.
๐According to the analysts, for Bitcoin to rally in earnest, we need to see an increase in stablecoin liquidity and circulating supply.
๐ฐThe U.S. monetary policy has had a significant impact. Although the stablecoin supply started to climb again in late 2023, rates have remained stubbornly high at over 5% for over a year.
๐ฎThe analysts believe that an increase in stablecoin liquidity and circulating supply through more accommodative monetary policy in the U.S. is necessary for Bitcoin to enter a bull market.
๐Bitcoin has been fluctuating between the high $50K level and the low $70K level for the past four months.
๐In terms of the stablecoin ecosystem, the market cap has been steadily increasing over the past few months, currently standing at $161 billion.
๐ฅTether remains the market leader with a market share of almost 70%, and the USDT supply is currently at an all-time high of $112 billion.
๐In June, Circle CEO Jeremy Allaire predicted that stablecoins could account for 10% of "global economic money" within the next decade or so.
๐ฏSo, Bitcoin lovers, keep your eyes peeled for changes in U.S. monetary policy and stablecoin liquidity! ๐