In a recent analysis, CryptoQuant analyst Mac.D emphasized the role of stablecoin liquidity in driving Bitcoin's price higher. The analyst noted that Bitcoin has been unable to surpass $73,700 since mid-March 2024 due to tightening monetary policies in the US over the past two years.

Stablecoins, the fiat currency-pegged crypto tokens used as dollar equivalents in crypto trading, play a crucial role in the market. For instance, Tether (USDT), the world's most popular stablecoin, saw its market cap fluctuate from $83 billion in April 2022 to $65 billion in November 2022, before recovering to over $112 billion recently.

Mac.D highlighted that Bitcoin's price has been rising due to expectations of lower interest rates and continued fiscal policy-induced market liquidity. However, the analyst believes that a more "accommodative monetary policy" in the US is needed for the market's next upward move. Until such signals emerge, Bitcoin is likely to trade sideways or correct further, suggesting a long-term view for investors.