The growth of Tether (USDT) stablecoin has decreased significantly in June, indicating a reduction in liquidity in the cryptocurrency markets.
A recent report by crypto custodian Copper has revealed that the month-on-month supply growth of the stablecoin was less than 1.5% as of June 24. This marks a stark decline from the over 5% growth seen in April and May. Fadi Aboualfa, head of research at Copper, stated that Tether’s trading volume has plummeted from its record highs in March, when it peaked at $767.22 billion, to $53.55 billion on June 24. With a market cap of $113 billion, the slower growth in Tether’s supply suggests that less money is entering the cryptocurrency markets.
Bitcoin markets have also experienced significant daily outflows, with over $540 million leaving the market last week, according to Copper’s analysis. Over the past 30 days, the price of Bitcoin (BTC) has declined by more than 10%, from around $68,000 to roughly $62,000 at the time of writing. Aboualfa explained that since the trading of exchange-traded funds (ETFs) began in January, the price of BTC has increased by 37%. He noted that Bitcoin is still trading within an acceptable low and high relative to holdings, indicating room for downward pressure.
The macroeconomic landscape is putting pressure on crypto markets, according to a June 25 report by ETC Group. The report indicates that traditional financial markets have begun to “price out” global growth expectations, with the consistent disappointment in U.S. economic data relative to forecasts being a key factor in the downward revision of global growth expectations. The Bloomberg US ECO Surprise Index, which measures the differences between actual macroeconomic data and forecasted figures, has dropped to its lowest level since 2019. This decline signifies a widespread acknowledgment of the worsening macroeconomic environment.
ETC Group warns that the ongoing downward trend in global growth forecasts, along with rising recession risks in the United States, could continue to pose a challenge for Bitcoin’s price.
In the world of cryptocurrency, Ethereum’s recent pullback might actually be a positive development, according to Dynamo DeFi and X Hall of Flame.