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The BTC price has been stagnant since the high point in March, mainly due to the reduction in Stable Coin supply caused by the tightening monetary policy in the United States. Since March 2022, as the Federal Reserve has raised the Interest Rate, the overall Stable Coin supply has begun to decline.
BTC truly realizes Rebound, we need to see the increase of stablecoin Liquidity and circulation supply. This view emphasizes the driving role of stablecoins in the BTC market. The expectation of drop in Interest Rate and the Liquidity brought by fiscal policies are the reasons for the recent pump of BTC.
Loose monetary policy in the United States, increased liquidity and circulation supply of stablecoins are necessary conditions for BTC to enter a bull market. Prior to this, BTC may continue to move sideways or experience a pullback.
The Federal Reserve is expected to drop the interest rate in September, provided that the economic data remains positive. Meanwhile, the total value of the Stable Coin market has been steadily rising in the past few months, currently accounting for about 7% of the entire encryption market. Tether continues to lead with nearly 70% market share.
#币圈观察员 #行情震荡下行,牛还在吗?