We often hear that there’s no liquidity entering the market right now, yet the total market cap of major stablecoins is at an all-time high and continues to climb.
It’s now approaching $260 billion after a short period of stagnation between late October and early November.
Beyond that, we can also see that stablecoin inflows, specifically USDC and USDT on ERC-20, remain strong. Since early August, the monthly average has been moving sideways between $110B and $130B. Today, this average sits around $112 billion, still above the yearly average of $106B .
On the other hand, selling pressure has increased in recent weeks, particularly from long-term holders taking profits, but also from short-term holders who’ve been struggling for over a month now and tend to capitulate.
All this shows that liquidity is still present and demand remains, even if it’s losing some momentum.
What’s currently holding Bitcoin back is the rise in recent selling pressure, which has created a temporary imbalance.
The key now is to keep monitoring this selling pressure and identify the moment when it clearly starts to weaken.
Written by Darkfost
