Analyst: Stablecoin Inflows to Exchanges Decrease by 50%, Bitcoin Faces Pressure

CryptoQuant analyst Darkfost stated that one of the core reasons Bitcoin is struggling to rebound is the lack of incremental liquidity. In the cryptocurrency market, the liquidity we are discussing mainly refers to stablecoins.

This chart shows the ERC-20 stablecoin inflow data to exchanges based on the 7-day moving average. Tracking this type of capital flow helps to determine whether the market is about to welcome an injection of incremental liquidity or will continue to be in a state of liquidity shortage. Since August, stablecoin inflows to exchanges have gradually declined from $158 billion to the current approximate $76 billion, indicating a significant shrinkage of incremental liquidity by 50%. Meanwhile, the 90-day average inflow has also decreased, from $130 billion to $118 billion. This phenomenon indicates that Bitcoin is facing the dilemma of shrinking demand, and the weakness in market demand is insufficient to absorb the current selling pressure.

At present, the market's downward trend remains unchanged, and the slight rebound during this period is mainly driven by reduced selling pressure rather than renewed buying interest. For Bitcoin, whether a true bull market can be initiated depends on whether new liquidity can smoothly enter the market.