Why does BTC become more dangerous after stablecoins shrink?

Many people have a misconception:
Only look at BTC price.
But real veteran traders first look at stablecoins.
Because BTC's rises and falls can sometimes be deceptive.
Liquidity won't be.
Recently, stablecoin reserves have been continuously decreasing, and the market has actually started to show subtle changes.
Simply put:
Cash on the sidelines has decreased.
And BTC can still stay high largely thanks to institutional and ETF funds support.
The problem lies here.
If new stablecoins continue to decrease and BTC can't keep attracting new funds, the market will increasingly rely on:
Stock game.
What does that mean?
Everyone is fighting each other.
What is most likely to happen in this kind of market?
High volatility.
Fake breakouts.
Whipsaw movements.
Because when liquidity is insufficient, the market is especially easy for big funds to control the rhythm.
This is also why many people have recently felt:
The market is becoming more "freaky."
Rising like a mad bull.
Falling like an elevator.
Basically, it's because market depth is starting to thin out.
And the decline in stablecoins actually also signals an important message:
Everyone is starting to be risk-averse.
Especially after the global macro environment becomes unstable, many funds no longer dare to blindly rush in as before.
So in the future, the market will increasingly resemble traditional finance:
Funds concentrate in leading players.
Junk projects' liquidity dries up.
In one sentence:
When liquidity is abundant, everyone looks like Buffett.
When liquidity shrinks, you'll see who is truly swimming naked. #稳定币储备下降