Markets
Crypto Market Missing Critical Ingredient to Fuel Sustained Price Rise, Says Analytics Firm
Despite some bullish developments, the digital asset market still lacks a key ingredient essential to fueling a sustainable rise in prices, according to analytics firm CryptoQuant.
CryptoQuant Remarks this demand is increasing for Bitcoin (BTC) and Ethereum (ETH).
“The growth in demand for Bitcoin among permanent holders has added 70,000 Bitcoins in the last 30 days. Demand from large investors is up 4.4% monthly. Additionally, large investors are pumping $1 billion into Bitcoin daily, which resembles activity before the 2020 rally…
The demand for Ethereum has also increased. After May 20, demand for ETH increased due to one-time ETH ETF approvals in the United States. Daily purchases by permanent holders reached 40,000 ETH, with large investors holding 16 million ETH.
Source: CryptoQuant/X
However, CryptoQuant Remarks this stable liquidity must reestablish itself to fuel a sustained crypto rally.
“Tether’s USDT market cap growth, an indicator of new liquidity in crypto markets, has continued to decelerate and is now growing at the slowest pace since February 11. generally accompanied by an acceleration in the growth of stable liquidity.”
Source: CryptoQuant/X
USDT is the leading stablecoin by market capitalization and aims to maintain a 1:1 peg to the US dollar.
Bitcoin is trading at $70,812 at the time of writing and is up almost 4% over the past seven days.
ETH is trading at $3,809 and is up 1.5% over the past week.
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