Analyst: Stablecoin monthly decline of $3 billion, BTC rebound is just a technical correction

On July 8, according to CryptoQuant analyst Axel Adler Jr.'s on-chain data observation, since mid-May, the stablecoin market has shifted from a source of liquidity to a consumer of liquidity.

Specifically, the 30-day average inflow of stablecoins to exchanges has dropped from $3.2 billion to $2.65 billion, 31% lower than the annual average of $3.86 billion.

Meanwhile, the combined market cap of USDT and USDC is shrinking at a rate of over $3 billion per month. The analyst noted that Bitcoin's 21% decline since mid-May may be a direct result of the shortage of stablecoin "fuel."

In addition, the market is currently seeing both a decline in new stablecoins flowing into exchanges and a continued contraction in the dollar base (market cap of USDT and USDC), which reflects crypto market liquidity. The interplay of these two factors further exacerbates the tight liquidity situation.

In summary, for the market to achieve a genuine improvement, both key indicators need to reverse simultaneously. That is, the 30-day average inflow should return above the annual average, and the monthly change in market cap should return to zero and turn positive.

But until these conditions are met, any BTC rebound should be viewed as a technical correction rather than a true trend reversal. Investors should closely monitor the dynamics of these two indicators to better grasp market direction.

#稳定币 #Market Liquidity