A slowdown in the supply of Tether suggests a slowdown in crypto activity

In June, Tether stablecoin supply growth slowed significantly, reflecting a decrease in liquidity in crypto markets.

According to a report by Crypto Guardian Copper, the month-to-month supply of Tether (USDT) was It has risen less than 1.5% since June 24, after falling more than 5% in April and May. Head of Copper Research, Fadi Abulfa, said:

“This suggests that while bitcoin and ethereum face downward pressure, less liquidity is moving into crypto markets, and altcoins lag behind with little hope of a significant rally in the short term.”

Tether's trading volume fell from an all-time high in 2018. On March 11, USDT trading activity increased by $767.22 billion and reached $53.55 billion on June 24. With a market cap of $113 billion, the slow growth of USDT supply suggests that the supply of USDT is showing low growth. cryptocurrency markets.

According to Copper Analysis, Bitcoin markets have recently experienced heavy daily inflows with more than $540 million leaving the market. Over the past 30 days, the price of Bitcoin (BTC) has dropped more than 10%, from around $68,000 to around $62,000 at the time of writing. Abu Wulfa explains:

“As markets focus on ETF volatility, Bitcoin's price is following a consistent path relative to these flows. Although this is not a measure of demand, it shows that investors are less eager to unload their bitcoins at a discount, even if they consider a crash.

Since exchange-traded funds (ETFs) began trading in January, the price of BTC has increased by 37%. “Bitcoin is still trading at acceptable lows and highs in terms of holdings, indicating room for downward pressure,” Aboulfa said.

Market macro view

Crypto markets are under pressure from the macroeconomic landscape. A June 25 ETC Group report indicated that traditional financial markets have begun to “price in” expectations for global growth.

“The main reason for revising expectations for global growth is the persistent disappointment in US economic data from a forecast perspective,” the analysis read.

Bloomberg's US Eco Surprise Index, which measures the gap between actual macroeconomic data and forecast figures, fell to its lowest level since 2019, the report said. This decline reflects broad recognition of a worsening macroeconomic environment.

According to ETC Group, the continued decline in global growth forecasts, coupled with the growing recession in the United States, could continue to challenge Bitcoin prices.

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