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Slowing Tether Supply Indicates Cooling Crypto Activity — TradingView News
June saw a sharp decline in Tether supply growth USDTUSD stablecoin, reflecting a reduction in liquidity in cryptocurrency markets.
A report from cryptocurrency custodian Copper shows that monthly stablecoin supply grew less than 1.5% as of June 24, a sizable drop from the more than 5% seen in April and May. According to Copper’s head of research, Fadi Aboualfa:
“This indicates that less liquidity is moving into cryptocurrency markets as Bitcoin and Ethereum face downward pressure, and altcoins remain far behind with little hope of a significant rally in the near term.”
Tether trading volume has plummeted from all-time highs on March 11, when USDT trading activity peaked at $767.22 billion, to $53.55 billion on June 24. With a market capitalization of $113 billion, slower growth in USDT supply suggests less money is flowing to cryptocurrency markets.
Bitcoin markets have seen notable daily outflows of late, with more than $540 million leaving the market last week, according to Copper analysis. In the last 30 days, Bitcoin 
“As markets focus on ETF dynamics, the price of Bitcoin is tracking an even path relative to these flows. While this is not an indicator of bullish demand, it does indicate whether investors are less enthusiastic about selling their Bitcoin at price granted, even if they predict a collapse.”
Since Exchange Traded Funds (ETFs) began trading in January, the price of BTC has increased by 37%. “Bitcoin is still trading between an acceptable low and high relative to holdings, indicating room for downside pressure,” Aboualfa said.
Macro market prospects
Cryptocurrency markets are under pressure due to the macroeconomic landscape. A June 25 report from ETC Group indicates that traditional financial markets have begun to “devalue” global growth expectations.
“A key factor in the downward revision of global growth expectations is the continued disappointment in US economic data relative to forecasts,” the analysis reads.
The Bloomberg US ECO Surprise Index, which measures differences between actual macroeconomic data and forecast data, fell to its lowest level since 2019, the report said. “This decline indicates widespread recognition of the worsening macroeconomic environment.”
According to ETC Group, the continued decline in global growth forecasts, combined with increasing risks of recession in the United States, could continue to pose a challenge to the price of Bitcoin.