Bitcoin’s bullish momentum has stalled, with the premier cryptocurrency consolidating below the critical $100,000 level for 14 consecutive days. The price recently dipped to $93,000 before experiencing a swift recovery, yet investor sentiment remains cautious due to macroeconomic headwinds and fading optimism over Donald Trump’s potential executive order on a national Bitcoin reserve.
#Bitcoin $BTC whales have been unusually quiet over the past week, with no significant buy or sell activity! pic.twitter.com/Qv34rExIUI
— Ali (@ali_charts) February 17, 2025
Whale Activity and Market Liquidity
A notable factor behind Bitcoin’s sluggish performance is the inactivity of large holders. On-chain analysis reveals that Bitcoin whales have remained unusually quiet, neither accumulating nor offloading substantial amounts of BTC. However, recent developments in stablecoin issuance indicate a potential market shift.
According to market intelligence firm Lookonchain, stablecoin liquidity surged significantly in the past 24 hours. Notably, $1.25 billion worth of stablecoins entered the market, suggesting increased purchasing power. Tether led the influx by issuing $1 billion in USDT on the Tron network, bringing its total issuance on the blockchain to $61.7 billion. Additionally, Circle minted $250 million in USDC on Solana, marking its second issuance in two days.
$1.25B worth of stablecoins minted in the past 24 hours.#Tether minted 1B $USDT on #Tron 4 hours ago.#Circle minted 250M $USDC on #Solana 12 hours ago.https://t.co/Ptsy2Bshz6https://t.co/KgLuFF8Num pic.twitter.com/Jyn1lJuFcQ
— Lookonchain (@lookonchain) February 19, 2025
Implications of Stablecoin Influx
This surge in stablecoin minting could signify a strategic move by traders preparing to buy the dip, potentially fueling a Bitcoin price rebound. Alternatively, it may indicate a defensive stance, with investors converting crypto holdings into stablecoins to hedge against further declines. The coming days will determine whether this liquidity boost translates into renewed bullish momentum or remains a protective measure.
Miners’ Bitcoin Sales Raise Concerns
Meanwhile, Bitcoin miners have been offloading significant holdings, further dampening market sentiment. Data reveals that miners sold over 2,000 BTC in the past week, reducing their reserves to approximately 1.81 million BTC. Analysts warn that a continued negative Bitcoin Miner’s Position Index (MPI) often precedes steep market corrections, raising concerns about a potential downward trend if selling pressure persists.
Also Read: IBIT Bitcoin ETF Faces Uncertain Future Amid Market Volatility and Institutional Shifts
As of now, Bitcoin trades at $95,697, showing minimal movement in the past 24 hours. Whether the stablecoin influx sparks a recovery or miner sell-offs accelerate a downturn remains to be seen. Traders should monitor on-chain activity closely as Bitcoin navigates this critical phase.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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