- Tether’s supply growth slowed significantly in June, indicating reduced liquidity in cryptocurrency markets.
- Bitcoin has seen major outflows, with over $540 million leaving the market last week, exacerbating the downward price trend.
- Economic uncertainty and weak global growth projections are adding pressure on cryptocurrency prices, including Bitcoin.
The recent trend in the cryptocurrency market shows a marked slowdown in the supply growth of Tether, the leading stablecoin, as broader economic challenges impact liquidity. Data from crypto custodian Copper highlights a stark decrease in the monthly growth rate of Tether’s supply, from over 5% in the earlier months to less than 1.5% by June 24.
This downturn is mirrored in Bitcoin’s market dynamics, where substantial capital outflows have been noted. Copper’s analysis detailed that more than $540 million exited the Bitcoin market last week alone, with the price of Bitcoin falling over 10% in the last 30 days, settling around $62,000 at present.
Implications for Crypto Liquidity
The diminished supply growth of Tether, which currently has a market capitalization of $113 billion, points to a slowdown in capital flow into the crypto markets. This trend is critical as Tether often serves as a bellwether for liquidity in digital asset markets. Fadi Aboualfa, head of research at Copper, notes that these figures reflect a cautious approach from investors, particularly at a time when major cryptocurrencies like Bitcoin and Ethereum are facing downward price pressures.
