Crypto Market Still in Bull Cycle But There Are Worrying Signs: CryptoQuant

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The crypto market is in the red amid significant bloodshed from bitcoin and altcoins. There is currently no bullish momentum, and BTC is hovering around key levels, falling below traders’ on-chain realized price of $65,800.The lack of bullish momentum in the crypto market is evident in weak bitcoin whale demand growth and low stablecoin liquidity. Demand from large BTC holders has no strength and is growing at a monthly rate of 4.8%. Although the current rate is slightly higher than the 2.

In addition, traders’ demand for BTC is yet to reignite, as seen in on-chain data, which suggests that they are not purchasing the asset at the moment. This cohort of investors has been, has continued to go low, recording the slowest pace since November 2023. Tether’s 60-day market capitalization growth has slowed from $12.6 billion in late April to $3.7 billion currently. The crypto market needs higher stablecoin liquidity for prices to surge.

The weak demand from U.S. investors can also be seen in spot Bitcoin exchange-traded funds, which have been on an outflow streak since June 13. The funds have collectively“Indeed, CryptoQuant’s Bull-Bear Market Cycle indicator is still trending downwards, signaling we remain in a bull market but without much upward momentum. The index is at its lowest level since October 2023 and below its 30-day moving average.

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