Bitcoin’s Price Outlook Strengthens as Stablecoin Liquidity Surges

Bitcoin appears to regain market momentum as stablecoin financial liquidity rises with Tether (USDT) market value advancing $5.75 billion over 60 days. New data from CryptoQuant reveals that this rise goes beyond the $3.46 billion benchmark mark for the last 60 days.

The stablecoin industry expanded 11% during these 60 days from $203.9 billion to $226.1 billion. Flows of stablecoins into the market bring fresh money to cryptos and tend to happen before BTC price recovery begins.

USDT market cap is expanding fast.

More liquidity is entering crypto—a trend historically linked to higher Bitcoin prices.

60-day market cap change: $5.75B
60-day SMA: $3.46B

Momentum is building. pic.twitter.com/a97yzYf2j6

— CryptoQuant.com (@cryptoquant_com) March 13, 2025

Bitcoin’s Price Volatility Persists Amid Liquidity Surge

According to Santiment data, Tether experienced its highest on-chain transfers for the past six months with 143000 transactions recorded on March 11th. Stablecoin boosts throughout previous market lows often created market recovery according to Santiment market analysts. Market participants seem to be adjusting their positions ahead of possible market recovery.

The market volatility of BTC remains strong despite its improved cash flow situation. Bitcoin reached $109,000 as its peak in January before taking a 30% decline down to $81,712 market value. According to the CryptoQuant market analysis from March 12, BTC seems ready to break out of its current oversold condition, which has marked past market rebounds.

💸 Tether's on-chain activity has been rapidly rising, with over 143K wallets making transfers yesterday alone (a 6-month high). When $USDT & other stablecoin activity spikes during price drops, traders are preparing to buy. Added buy pressure aids in crypto prices recovering. pic.twitter.com/siFOR7vSf7

— Santiment (@santimentfeed) March 12, 2025

Short-Term Bitcoin Holdings Surge to 23% in March

The amount of Bitcoin held by holders for under one month surged to 23% during March with a pattern observed in December 2024. The prices of BTC reduced significantly after reaching new peaks each time and decreased MVRV to 1.8 which remained near its 2024 bottom of 1.71. 

The MVRV ratio helps investors check if BTC sells above or below its actual value through market price comparison to average purchase amounts. A price drop to $70,000 will let the MVRV ratio reach its previous cycle bottoms providing an opening for price recovery.

However, market sentiment remains fragile. A significant group of those owning between 100 and 1,000 BTC sold 50,600 units worth $4.07 billion during the last week according to Santiment data. Large investors stay reserved in their spending practices at present.

Bitcoin’s Network Strength: 54.72 Million Holders Remain Firm

The BTC system remains operational despite strong market liquidation. TheBTC market maintains strong support from the total available 54.72 million owners who hold the digital currency. BTC’s recovery depends on its strength as market participants sell, historical patterns, and growing liquidity.

Market observers continue to monitor crucial analytics such as stablecoin transfers to BTC addresses and large investor decisions during this volatile period. The next few weeks need to measure if BTC will keep rising ever since liquidity patterns started favoring it.

Conclusion

Bitcoin’s resilience amid liquidity inflows and selling pressure will shape its future trajectory. While stablecoin growth signals potential recovery, market volatility and large holder sell-offs add uncertainty. Analysts remain watchful, as historical trends suggest a rebound may be imminent if Bitcoin reaches key support levels. The coming weeks will be crucial.

Stay tuned to The BIT Journal and keep an eye on Crypto’s updates. Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!

FAQs

1. How does stablecoin liquidity affect Bitcoin?

Stablecoin inflows signal new liquidity, often leading to BTC price rebounds.

2. Why is Bitcoin still volatile despite rising liquidity?

Large holder sell-offs and market sentiment keep BTC’s price unstable.

3. What does the MVRV ratio indicate?

A low MVRV ratio suggests BTC may be oversold, hinting at a potential rebound.

4. Are whales impacting Bitcoin’s price?

Yes, large holders recently sold 50,600 BTC, adding selling pressure.

Glossary of Key Terms

• Bitcoin (BTC) – Leading cryptocurrency, often called digital gold.

• Stablecoin – Crypto pegged to a stable asset like USD.

• USDT (Tether) – The largest USD-backed stablecoin.

• Liquidity – Ease of buying or selling an asset.

• On-Chain Activity – Blockchain transactions.

• MVRV Ratio – Measures if BTC is overvalued or undervalued.

References

Twitter

Cryptoquant 

Twitter

Read More: Bitcoin’s Price Outlook Strengthens as Stablecoin Liquidity Surges">Bitcoin’s Price Outlook Strengthens as Stablecoin Liquidity Surges