Bitcoin’s price outlook brightens as stablecoin liquidity surges, with USDT’s market cap expanding by $5.75 billion over the past 60 days.
The recent data highlights that this increase exceeds its 60-day moving average of $3.46 billion. During this time, the stablecoin market has grown significantly, rising 11% from $203.9 billion to $226.1 billion.
Historically, such stablecoin inflows have indicated new liquidity entering the cryptocurrency market, often leading to price rebounds for Bitcoin (BTC).
Additionally, recent insights reveal a six-month high in Tether’s (USDT) on-chain activity, with more than 143,000 wallets engaged in transfers on March 11. This surge in stablecoin activity has often preceded market recoveries, suggesting that traders might be strategizing for an upcoming market turn.
Analysts believe the rising liquidity could foster a broader market recovery, despite Bitcoin’s current volatility. Having fallen nearly 30% from its all-time high of $109,000 in January, Bitcoin is trading at $81,712 at the time of this report.
Recent market analysis indicates that Bitcoin may be nearing oversold conditions, historically linked to price recoveries. In March, the proportion of Bitcoin held for less than a month reached 23%, reminiscent of spikes noted in December 2024, shortly before price corrections occurred.
The Market Value to Realized Value (MVRV) ratio, a tool for assessing whether Bitcoin is overvalued or undervalued, shows that if Bitcoin drops to the $70,000 range, it could align with historical cycle lows, potentially indicating a price rebound.
However, market sentiment remains fragile, with large Bitcoin holders, defined as those possessing 100 to 1,000 BTC, offloading over 50,600 BTC in the last week—amounting to approximately $4.07 billion in sell-offs.
On a positive note, the number of Bitcoin holders is approaching an all-time high of 54.72 million, reflecting ongoing network growth amidst current pressures. Bitcoin’s resilience in facing selling pressure while leveraging increased liquidity and recovery patterns will play a key role in determining the market’s future direction.
