Over the past week, Bitcoin’s price has been going up again. It jumped by an impressive 16.25% and quickly exceeded the $67,000 mark. This rise has made investors feel better, and many are looking for a long bull run after the Bitcoin halving event in April. However, Bitcoin’s price rises in the future depend on a number of things, such as how open the stablecoin market is.
In a Friday post on the X social platform, the well-known on-chain data platform CryptoQuant talked about how vital stablecoin liquidity is to Bitcoin’s price rise. For Bitcoin’s price to go up even more, CryptoQuant said, there needs to be a corresponding rise in stablecoin market shares.
If you want to know how much a stablecoin is worth, you can compare it to a safe asset like the US dollar. These assets, worth a total of $163.56 billion, are necessary for users afraid of market instability to start using digital assets. For example, CryptoQuant said that Tether (USDT), the biggest stablecoin and third-biggest cryptocurrency with a market cap of $113.78 billion, significantly affected Bitcoin’s price.
Bitcoin’s Price Growth Linked To USDT Liquidity Changes
The data team saw that USDA’s growth has been steady at 1.03% over the past month. This lack of movement means that Bitcoin’s price only increased by 3.21% during the same period. While USDT’s market share grew by 6.6% in March 2024, BTC price rose from $61,168 to a new all-time high of $73,750.
The connection between BTC and USDT might come from the fact that USDT is used frequently in crypto trade. If USDT is more liquid, traders may be able to raise demand for riskier assets like BTC. CryptoQuant says that a fast rise in stablecoin liquidity is needed to keep BTC price performance going in the right direction.
AI expert Ali Martinez said that Bitcoin should stay above $66,385 to avoid a drop in the four-figure range. The price of BTC is going up right now. It’s worth $67,000 now, 14% more than yesterday.
Things that are moved daily are now worth $37.2 billion, 38.08% more than they were. Why is BTC tied to a stablecoin? This shows how important it is for the market to be open and honest. Market watchers are very interested in people who want to buy BTC. The rise of stablecoins and Bitcoin’s price is a big part of the wins.
