Bitcoin Price May Rebound as Stablecoin Liquidity Surges
BitcoinS price outlook is getting better. The reason? Stablecoin liquidity is on the rise. USDT’s market cap has grown by $5.75 billion in the past 60 days. This is more than its 60-day simple moving average of $3.46 billion, as CryptoQuant reported on March 13.
The stablecoin market has also seen a 11% increase, from $203.9 billion to $226.1 billion. Historically, such inflows have led to higher Bitcoin prices.More liquidity is entering the crypto market, which is a good sign for Bitcoin.
Santiment’s data shows a six-month high in Tether’s on-chain activity. over 143,000 wallets made transfers on March 11. This suggests traders might be preparing for a market turnaround.
Bitcoin’s price has been volatile. It fell nearly 30% from its all-time high of $109,000 in January. It’s now trading at $81,712. But analysts believe increasing liquidity could help a market-wide recovery.
CryptoQuant’s March 12 analysis suggests Bitcoin might be in oversold territory. This has historically led to price recoveries. The MVRV ratio, which compares Bitcoin’s market price to its average purchase price, is close to its 2024 low. If Bitcoin falls to $70,000, it could signal a price rebound.
However, market sentiment is fragile. Large Bitcoin holders have sold off more than 50,600 BTC in the last week. But the number of Bitcoin holders is still near its all-time high of 54.72 million. This shows the network is still growing.
Bitcoin’s ability to handle selling pressure while benefiting from growing liquidity will determine the market’s next move.
