$BTC Trend?
Bitcoin’s recent dip below the $90,000 mark has raised new concerns in the market, especially as this decline comes at a time when macroeconomic conditions appear supportive. Despite the Federal Reserve announcing its third interest-rate cut of the year—typically a bullish signal for risk assets like cryptocurrencies—Bitcoin continues to show weakness. Analysts believe the answer lies not in macro policy but in liquidity, particularly stablecoin inflows. Data from BeInCrypto Markets indicates that December has been highly volatile for Bitcoin, following two consecutive months of losses, including its steepest monthly decline of the year in November. As of the latest update, $BTC was trading near $89,885, down almost 3% in the past 24 hours. Instead of rebounding after the rate cut, the price moved sharply downward, prompting deeper analysis into the factors limiting any potential recovery. According to one analyst, Darkfost, the primary issue is shrinking liquidity. Stablecoin inflows—often the fuel behind Bitcoin rallies—have dropped dramatically from $158 billion in August to roughly $76 billion today, marking a massive 50% contraction. The 90-day average inflows have also slipped from $130 billion to $118 billion, reinforcing a downward trend in fresh capital entering the ecosystem. With fewer stablecoins moving to exchanges, Bitcoin faces ongoing selling pressure with insufficient buying interest to counteract it. Even the minor rebounds seen in recent weeks are less about strong demand and more about a temporary reduction in sellers. For Bitcoin to regain momentum, Darkfost emphasizes that new liquidity, especially in the form of stablecoins, must re-enter the market. Meanwhile, stablecoin issuers like Tether (USDT) and Circle (USDC) are still expanding supply, reaching new market cap highs. However, this new supply isn’t flowing into Bitcoin as expected. Instead, large amounts are being diverted toward cross-border payments and derivatives trading, rather than spot markets where actual Bitcoin purchases occur. $BTC
