🎉Hey there, Bitcoin enthusiasts!🎉 Here's some food for thought. CryptoQuant analyst Mac.D suggests that for Bitcoin to regain its bullish momentum, we need to see an increase in stablecoin liquidity and circulating supply. 📈

BTC hasn't been able to break new highs above $73,700 since mid-March 2024, largely due to tightening monetary policy conditions in the U.S. over the past two years. Higher interest rates worldwide have impacted liquidity across the economy, including stablecoin liquidity and total circulating stablecoin supply.💰

Stablecoins, like Tether (USDT), are fiat currency pegged crypto tokens used as dollar equivalents in the crypto trading economy. Tether's market cap contracted from $83 billion in April 2022 to $65 billion in November 2022, but recovered to over $82 billion in Q2 2023, and climbed to over $112 billion over the past three quarters, rising alongside Bitcoin's price. However, total stablecoin liquidity has remained mostly flat during Q2 2024, as has Bitcoin's price.📉

Mac.D believes Bitcoin's price has been rising due to the expectation of lower interest rates and continued fiscal policy bringing liquidity into the market. However, the next market surge will require more "accommodative monetary policy" in the U.S. Until then, Bitcoin is likely to trade sideways or correct further, so investors should take a long-term view of the market.🔮

So, keep your eyes peeled for changes in stablecoin liquidity, folks! It might just be the key to reviving Bitcoin's bull market. 🐂🚀