Key Points
- Bitcoin’s market demand has dropped, with low liquidity across the market.
- A recent addition of $1 billion in USDT may provide some support to the market.
Bitcoin’s demand has seen a drop, remaining below the levels seen in the previous month. The market liquidity has also seen a significant decline, falling below the 30-day average. However, the addition of $1 billion in USDT to the market could provide some support.
In the last 24 hours, there has been a noticeable increase in the Bitcoin market. Despite a decline in market demand, low momentum, and weak liquidity flow, the asset’s trading value has increased by 6.54 percent, reaching a press-time value of $93,684.
Decline in Market Demand
There has been a significant reduction in Bitcoin’s demand among a group of investors in the market. According to CryptoQuant, the demand for Bitcoin in the spot market fell sharply, resulting in a $13 billion decline in demand. However, this 30-day drop has been relatively minimal compared to the previous month.
The demand momentum for Bitcoin has weakened, reaching its lowest level since October 2024. This drop in demand indicates that fewer new investors are purchasing Bitcoin, meaning less liquidity is flowing into the market.
Impact of Liquidity Addition on Bitcoin
The demand for the stablecoin USDT is on the rise, with $1 billion minted in the past 24 hours. This increase suggests a growing interest from traders, who may now be more willing to buy crypto assets, with Bitcoin likely to benefit the most.
If more stablecoins are minted, it could indicate that investors are becoming bullish. This could potentially allow Bitcoin to continue its recent upward trend and possibly lead to a rally.
