Analyst: The decline in stablecoin reserves releases liquidity and signals a contraction in liquidity; Bitcoin’s breakout still lacks funding support

PANews July 21—CryptoQuant analyst Darkfost said in a post that Bitcoin has been oscillating around the $60k key support level for nearly 165 days. It failed to hold and has not reignited upward momentum. One of the core reasons is that the market lacks new liquidity. Over the past 30 days, net outflows of stablecoin reserves from Binance and Bybit have approached $2.3 billion. Whether it’s inflow into Bitcoin or new demand for the entire crypto market, conditions have been relatively weak. Since the beginning of the year, exchange stablecoin reserves have continued to decline. This rather bearish market sentiment is still limiting the capital support Bitcoin needs to break out of its current consolidation range.

However, as regulatory measures such as the GENIUS Act require stablecoins to improve compliance, the decentralization of the stablecoin ecosystem may be weakened. In the long run, Bitcoin’s decentralization characteristics may become even more prominent as a result.