With Bitcoin trading sideways over the past few months, traders are waiting for their signal to re-enter the market before crypto reclaims its bullish momentum from earlier this year.
According to the author, Bitcoin hasn’t been able to break new highs above $73,700 since mid-March 2024 due to tightening monetary policy conditions in the United States for the preceding two years. Stablecoins are the fiat currency pegged crypto tokens that exchanges use as dollar equivalents in the crypto trading economy, and which traders often hold in preparation to buy BTC at a later time.
Its total value quickly recovered to over $82 billion in Q2 2023, and steadily climbed again to over $112 billion over the past three quarters, rising alongside Bitcoin’s price during these periods. That said, total stablecoin liquidity has remained mostly flat during Q2 2024, and so has Bitcoin’s price.