Markets
The Crypto Market Is Missing a Critical Ingredient to Fuel Sustained Price Rises, Says Analytics Firm
Despite some optimistic developments, the digital asset market still lacks a key ingredient that is critical to fueling a sustained price recovery, according to analytics firm CryptoQuant.
CriptoQuant grades that demand for Bitcoin has increased (Bitcoin) and Ethereum (ETH).
“The growth in demand for Bitcoin from permanent holders has added 70,000 Bitcoins in the last 30 days. Demand from large investors grows 4.4% per month. Additionally, large investors are pumping $1 billion daily into Bitcoin, similar to 2020 pre-rally activity…
Demand for Ethereum has also increased. After May 20, demand for ETH skyrocketed due to approvals of spot ETH ETFs in the US. Daily purchases by permanent holders rose to 40,000 ETH, with large investors holding 16 million ETH.”
Source: CryptoQuant/X
However, CryptoQuant grades that stablecoin liquidity needs to recover to fuel a sustained crypto recovery.
“Growth in Tether’s USDT market capitalization, a proxy for new liquidity in crypto markets, has continued to slow and is now growing at the slowest pace since February 11.
Source: CryptoQuant/X
USDT It is the leading stablecoin by market value 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% in the last seven days.
ETH is trading at $3,809 and is up 1.5% over the past week.
Don’t miss a beat – Subscribe to receive email alerts directly to your inbox
To check Price Action
Follow us on X, Facebook It is Telegram
To surf Hodl’s daily mix
 
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: middle of the journey