Stalled Stablecoin Supply Casts Doubt on BTC's Bullish Recovery as U.S. Inflation Report Looms
The combined supply of the top four stablecoins has stabilized, showing minimal change over the past 30 days, contrasting sharply with the liquidity surge seen during the November-December rally. This stagnation in stablecoin inflows indicates a weakened buying environment as the U.S. inflation report approaches. Bitcoin's recovery from below $90,000 raises bullish possibilities, but the halted stablecoin liquidity raises concerns about potential downside volatility if the upcoming inflation data exceeds expectations. The report is anticipated to show a 0.3% month-on-month increase in living costs for December, with heightened forecasts suggesting less aggressive monetary policy from the Federal Reserve. The current stablecoin supply is approximately $189 billion, revealing a 30-day net change of only 0.37%. This trend contrasts with the $27.3 billion inflows recorded during the bull run, highlighting a significant decrease in speculative demand and liquidity-driven momentum in the market.
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