In June, the growth of the Tether (USDT) stablecoin supply has significantly decreased, indicating reduced liquidity in the cryptocurrency markets. According to a report by crypto custodian Copper, the month-on-month supply of the stablecoin grew less than 1.5% as of June 24, a notable decline from the over 5% growth seen in April and May. Fadi Aboualfa, Copper’s head of research, pointed out that Tether’s trading volume dropped from its peak of $767.22 billion on March 11 to $53.55 billion on June 24. With a market cap of $113 billion, the slower growth in USDT’s supply suggests that less money is flowing into the cryptocurrency markets.
The Bitcoin markets have also experienced significant daily outflows recently, with over $540 million leaving the market last week, as per Copper’s analysis. Over the past 30 days, the price of Bitcoin (BTC) has decreased by more than 10%, dropping from around $68,000 to approximately $62,000. Aboualfa noted that since the trading of exchange-traded funds (ETFs) began in January, the price of BTC has risen by 37%, indicating that there is room for downward pressure.
In terms of the macroeconomic outlook, crypto markets are facing pressure from the traditional financial landscape. A report by ETC Group on June 25 indicated that traditional financial markets have begun to revise global growth expectations downward. The report stated that the consistent disappointment in U.S. economic data relative to forecasts has been a key factor in the downward revision of global growth expectations. The Bloomberg US ECO Surprise Index has dropped to its lowest level since 2019, signifying widespread acknowledgment of the worsening macroeconomic environment. ETC Group warned that the ongoing downward revision of global growth forecasts, along with rising recession risks in the United States, could pose a challenge for Bitcoin’s price.
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