$3.65 billion in new USDT has yet to be allocated

Liquidity is growing in the crypto market, but remains unallocated. Over the past 30 days, more than $3.65 billion has been injected into the market through the issuance of USDT, according to CryptoQuant’s latest analysis.

This increase in capitalization indicates a greater infusion of external capital into the crypto market, as the issuance of new USDT requires the backing of assets and goods from the traditional financial sector. While this increased liquidity often correlates with increased demand for digital assets, the impact is not always immediate.

Currently, much of the capital tied to these stablecoins has not yet exerted buying pressure on the market, remaining dormant on the sidelines.

This unallocated liquidity represents untapped “firepower” that, if deployed, could quickly influence market conditions.

Institutional investors, in particular, may be strategically positioning themselves using time-weighted average price (TWAP) orders or algorithmic trading, methods designed to minimize short-term price fluctuations.

These tactics allow a gradual entry into positions, with the possibility of delaying the visible effects of new liquidity on market prices. As a result, while the market is ready, the full impact on prices and behavior remains to be seen, leaving it in a state of anticipation of potential sudden moves.

Bitcoin briefly touched $55,500 on Wednesday, its lowest level since August 8, nearly erasing last month’s gains. Since then, it has experienced a modest recovery, trading above $56,700.

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