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Demand for Bitcoin from large investors and permanent holders is on the rise, but Bitcoin (BTC) has yet to see any significant price growth as USDT market cap growth slows, according to a new report from CryptoQuant.
“Stablecoin liquidity has not regained its growth trajectory to support price appreciation,” CryptoQuant said. stated“Tether’s USDT market capitalization growth, an indicator of emerging liquidity in the cryptocurrency market, continues to slow and is now growing at its slowest pace since February 11th.”
As previously mentioned, demand for Bitcoin is accelerating among large investors (so-called “whales”) and long-term holders, with the month-on-month growth in demand from these groups at 4.4%, the fastest increase since April.
Over the past 30 days, these bitcoin holders have added 70,000 BTC to their holdings, the largest increase since April, which mirrors the phase leading up to the 2020 rally, when large investors poured roughly $1 billion into Bitcoin, according to the report.
Despite low Bitcoin price volatility, on-chain activity is brisk. Data shows that institutional investors are actively purchasing Bitcoin for their custodial wallets. Additionally, long-term holders have resumed accumulation.
The report also noted that selling pressure on Bitcoin has decreased as traders have largely completed profit booking: Unrealized gains have fallen to 3% from 69% in early March, which is expected to reduce selling pressure going forward.
At the same time, Ethereum (ETH) has seen a surge in demand, especially following the approval of a spot Ethereum ETF in the United States, with average daily purchases of 40,000 ETH by permanent holders recorded since May 20.
Despite optimistic signs such as increased institutional buying and the launch of a spot ETF, the CryptoQuant report suggests that sluggish stablecoin liquidity growth could hinder the prospects of a significant Bitcoin price upswing in the short term.
Bitcoin price stagnates despite surge in inflows into US spot Bitcoin ETF
The report also highlighted a notable increase in Bitcoin acquisitions from U.S. spot Bitcoin exchange-traded funds (ETFs), which saw their total holdings increase from 819,000 to 859,000 between May 1 and June 6.
On June 7, U.S. spot Bitcoin funds recorded net inflows of $131 million, marking the 19th consecutive day of inflows. the other side.
Historically, strong inflows into Bitcoin ETFs have been accompanied by higher Bitcoin prices, but price movements over the past two weeks have shown that ETF inflows are not the only factor influencing Bitcoin price movements.
CoinGecko data It shows that Bitcoin’s price dropped from around $72,000 to $69,000 following Friday’s jobs and unemployment data.
At the time of writing, Bitcoin was trading at around $69,200, down slightly over the past 24 hours and about 6% from its all-time high recorded in March.
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