The post Bitcoin Bull Run To Resume Soon? Crypto Market Liquidity At Record Highs appeared on BitcoinEthereumNews.com.

According to the latest on-chain data, liquidity in the cryptocurrency markets has reached an all-time high. Here’s the implication of the rising liquidity on the price of Bitcoin and its future trajectory. Stablecoin Market Cap Hits New Highs — Impact On Bitcoin Price In its latest report, CryptoQuant revealed that liquidity in the crypto market hit a record high in late September, sparking conversations about the Bitcoin bull market resuming. According to the on-chain analytics firm, crypto market liquidity is measured by stablecoin value and market capitalization, which now stands at around $169 billion. Data from CryptoQuant shows that the total market capitalization of major US dollar-backed stablecoin has increased significantly so far in 2024, rising by 31% (equivalent to $40 billion) year-to-date. Most of the growth, though, was triggered by the two largest stablecoins, Tether’s USDT and Circle’s USDC. Source: CryptoQuant Unsurprisingly, USDT and USDC continue to dominate the stablecoin industry, with market shares of 71% and 21%, respectively. According to data from CryptoQuant, USDT’s market capitalization has grown by 30% in 2024 (about $28 billion) while USDC’s market cap is up by 44% (equivalent to $11 billion) year-to-date. Another strong signal of growing market liquidity is the record-high stablecoin balances on centralized exchanges. Specifically, this growth is driven by USDT (ERC20 on the Ethereum), which has seen its balances on exchanges hit a record high of 22.7 billion in October. This reflects a 54% increase (about $8 billion) so far in 2024. Historically, growing balances of stablecoins on exchanges are positively associated with higher crypto market prices, specifically the Bitcoin price. This is because the larger stores of stablecoins can signal more buying power for investors, as they can quickly trade stablecoins for other cryptocurrencies on exchanges (known to offer these trading services). Larger stablecoin balances on exchanges…

---

Filed under: News - @ October 13, 2024 4:03 am