Rising U.S. bank reserves fail to translate into BTC buying demand

An increase in U.S. bank reserves has not translated into buying demand for Bitcoin, according to a CryptoSlate analysis. Banks’ reserve balances deposited at the Federal Reserve stood at $2.96 trillion as of Nov. 4, local time, up $67.5 billion from a week earlier, while the circulating supply of dollar-pegged stablecoins fell 1.91%, or about 5.7 billion tokens, over the same period, the outlet said. Tether’s USDT supply fell by 3.65 billion, accounting for 63.37% of the total decline. CryptoSlate said the two indicators alone do not fully explain the subsequent selling pressure in Bitcoin, and changes in liquidity could still affect the market with a lag. Still, the drop in stablecoin supply alongside Bitcoin’s decline shows bank liquidity growth clearly failed to act as a bullish catalyst for the cryptocurrency, it added.