Bitcoin struggles to rally as Tether’s USDT growth stagnates: CryptoQuant

Bitcoin is facing challenges in gaining momentum as the growth of Tether’s USDT, a popular stablecoin, slows down. This stagnation in stablecoin liquidity is seen as a hindrance to a potential price rally for Bitcoin, according to CryptoQuant’s latest report. Despite this, there is an increasing demand for Bitcoin from large investors and long-term holders, with a monthly growth rate of 4.4%, the fastest increase since April. These investors have accumulated 70,000 BTC in the last 30 days, reflecting a similar phase before the 2020 rally when $1 billion was invested in Bitcoin by large investors. On-chain activity for Bitcoin remains strong, with institutional investors actively purchasing Bitcoin for custody wallets and long-term holders resuming accumulation. Additionally, Ethereum has experienced a surge in demand, particularly after the approval of spot Ethereum ETFs in the US. While there are signs of increased institutional buying and the launch of ETFs, the report suggests that the slow growth in stablecoin liquidity may hinder a major Bitcoin price rally in the short term. It is worth noting that despite strong inflows into US spot Bitcoin ETFs, the recent price movements of Bitcoin indicate that ETF flows are not the sole determinant of its price actions.