Bitcoin's recent decline has led to a drop below $90,000, despite positive macroeconomic catalysts.
Here's what's happening:
- Bitcoin has been volatile in December, following two consecutive months of losses.
- The drop comes despite the Federal Reserve's decision to cut interest rates, which is typically viewed as bullish for the crypto market.
- The main reason for Bitcoin's struggle is a lack of incoming liquidity, specifically stablecoin inflows.
- Stablecoin inflows into exchanges have dropped from $158 billion in August to $76 billion, a 50% decline.
- The 90-day average has also fallen from $130 billion to $118 billion, indicating a downward trend.
- The decline in stablecoin inflows signals weakening demand and ongoing selling pressure.
- For Bitcoin to restart a genuine bullish trend, new liquidity entering the market is key.
- Stablecoin issuers continue to mint new tokens, but data shows that supply is being absorbed by cross-border payment demand and derivatives exchanges.
- Asia leads in stablecoin activity, with Africa, the Middle East, and Latin America standing out relative to GDP.
- Bitcoin's decline highlights that macro catalysts alone are no longer driving the market, and renewed stablecoin liquidity is needed for a sustained bullish reversal.#TrumpTariffs #BinanceBlockchainWeek #WriteToEarnUpgrade #BinanceAlphaAlert #TrumpTariffs $BTC

