Bitcoin Price Outlook Brightens as Stablecoin Liquidity Surges

Bitcoin’s market outlook is showing signs of improvement as stablecoin liquidity surges, with Tether (USDT) leading the charge. Over the past 60 days, USDT’s market capitalization has expanded by $5.75 billion, significantly surpassing its 60-day simple moving average of $3.46 billion, according to a March 13 post by CryptoQuant on X.

The broader stablecoin market has also seen remarkable growth, rising 11% from $203.9 billion to $226.1 billion in the same period. Historically, such an influx of stablecoins has indicated the arrival of new liquidity, often setting the stage for Bitcoin price rebounds.

Adding to this positive trend, Santiment’s data revealed a six-month high in on-chain activity for Tether, with over 143,000 wallets executing transfers on March 11 alone.

Analysts at Santiment suggest that past spikes in stablecoin activity during market downturns have often preceded recoveries, hinting that traders may be positioning themselves for an upcoming market turnaround.

Despite this influx of liquidity, Bitcoin remains under pressure, having dropped nearly 30% from its all-time high of $109,000 in January.

READ ALSO: Trump Takes Birthright Citizenship Battle to the Supreme Court

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

As of the latest market update, Bitcoin is trading at $81,712. However, CryptoQuant’s March 12 analysis suggests that Bitcoin might be entering oversold territory, a condition that has historically led to price recoveries.

Further supporting this perspective, the share of Bitcoin held for less than a month surged to 23% in March, mirroring a similar trend seen in December 2024. Both instances were followed by price corrections, driving the Market Value to Realized Value (MVRV) ratio down to 1.8—close to its 2024 low of 1.71.

The MVRV ratio helps assess whether Bitcoin is overvalued or undervalued by comparing its market price to the average purchase price of all coins. If Bitcoin falls to the $70,000 range, the ratio could align with previous cycle lows, potentially signaling another price rebound.

READ ALSO: Gold Hits Record High Amid Fresh US-EU Trade Tensions

While liquidity is increasing, market sentiment remains fragile. Large Bitcoin holders, or wallets holding between 100 and 1,000 BTC, have collectively sold off more than 50,600 BTC in the past week—equivalent to approximately $4.07 billion, according to Santiment. This selling pressure could weigh on Bitcoin’s short-term movements.

On a more optimistic note, Bitcoin’s network growth remains strong. The number of Bitcoin holders is near an all-time high of 54.72 million, indicating sustained long-term interest despite recent sell-offs.

Bitcoin’s ability to withstand selling pressure while benefiting from rising liquidity and historical recovery patterns will be key in determining its next moves. If stablecoin inflows continue and Bitcoin’s MVRV ratio reaches previous cycle lows, a potential rebound could be on the horizon. However, traders should remain cautious, as volatility and large-holder sell-offs may still impact price movements in the short term.