To revive Bitcoin's (CRYPTO:BTC) bull market, an increase in stablecoin liquidity is essential, according to CryptoQuant.

Bitcoin's price has been stagnant for months, struggling to break past $73,700 since mid-March 2024, largely due to tight monetary policies in the US.

Stablecoins, such as Tether (CRYPTO:USDT), play a crucial role in crypto trading as dollar equivalents, and their circulating supply needs to rise to drive Bitcoin higher.

Tether’s market cap saw significant fluctuations, dropping to $65 billion in November 2022 before recovering to over $112 billion by 2024.

Despite this recovery, stablecoin liquidity has remained flat, mirroring Bitcoin's price trend.

Analyst Mac.D emphasises that along with stablecoin growth, a more accommodative US monetary policy is needed for Bitcoin's next upward move, which might only begin with expected interest rate cuts in September.