Tether (USDT) Market Cap Growth Slowdown Causes Liquidity Crunch in the Market, Bitcoin (BTC) and Other Cryptocurrencies Stagnate

That's according to a report from on-chain analytics firm CryptoQuant, which noted that BTC is at a critical point —between the bottom and further decline.

Cryptocurrency markets are showing signs of slowing down as key stablecoinごとTether (USDT) stalls in terms of market cap growth, according to a new report from on-chain analytics firm CryptoQuant.

The report highlights several interesting points. First and foremost, it notes that BTC is at a critical juncture — between the bottom and further decline. This is because stablecoin liquidity is declining, and without liquidity entering the market, BTC lacks the necessary conditions for a price rally.

CryptoQuant also points out that mid and large-sized BTC miners are selling a portion of their holdings, which contributes to more downward pressure. Finally, the report adds that the Fear and Greed index is at 51, signalling cautiousness or doubt among investors as uncertainty grips the market.

On the other hand, Bitcoin ETFs saw US$310.21M (AU$458.46M) in net inflows on July 12, according to data from SoSo Value. This marks the sixth consecutive day of inflows and a total of US$15.81B (AU$23.36B). Notably, the surge in inflows came a day after CFTC’s Chairman Rostin Behman classified BTC and Ethereum (ETH) as commodities rather than securities.

This statement was met with positive reactions from the crypto community, especially in light of the ongoing legal battle between the SEC and Ripple (XRP) over whether XRP is a security or not.

After the CFTC’s commodity classification statement, BTC’s price rose to above the US$60k barrier once more. Data from CoinMarketCap shows that BTC is trading at US$61,043 (AU$90,204), a 2.76% change from yesterday and an increase of roughly 9.46% on the weekly timeframe. The 24-hour trading volume has soared almost 30% to US$22.2B (AU$32.8B).

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