itcoin">Bitcoin’s price has remained relatively flat despite heightened demand from major investors and long-term holders, according to a recent analysis by crypto analytics firm CryptoQuant. The report cites lackluster growth in the market capitalization of the leading stablecoin Tether (USDT) as a potential roadblock preventing a substantial itcoin">Bitcoin price surge.
While institutional players and permanent itcoin">Bitcoin holders have been steadily accumulating more of the cryptocurrency, the sluggish expansion of USDT’s market cap points to limited fresh capital inflows into the crypto market ecosystem. This dearth of new liquidity could be hampering itcoin">Bitcoin’s ability to stage a major rally, despite the robust demand.
The analysis also highlights decreased selling pressure on itcoin">Bitcoin as traders have largely exhausted profit-taking activities. With unrealized gains sitting at just 3%, down significantly from 69% in early March, analysts expect reduced sell-side momentum going forward.
Although notable positives like ramped-up institutional itcoin">Bitcoin acquisitions and the launch of spot itcoin">Bitcoin ETFs in the U.S. have materialized, CryptoQuant’s report suggests stagnant stablecoin market cap growth could continue capping itcoin">Bitcoin’s upside potential in the near term.
