Bitcoin and the risk of stablecoin liquidity shortage – Holders should know THIS!
- Are stablecoin reserves holding back liquidity flows into Bitcoin?
- Bitcoin ETFs have grown significantly lately and might have influenced the crypto’s price too
Stablecoins play a vital role during Bitcoin’s bull and bear markets. They are the medium through which liquidity flows into BTC and they also provide a buffer for holding value during bearish times. However, could stablecoin liquidity be holding back Bitcoin?
CryptoQuant founder Ki Young Ju postulated in a recent analysis that stablecoins are not capable of driving bullish momentum. The statement assumed the most bullish scenario, accounting for both Bitcoin and stablecoin reserves. He said,
“Over the past two weeks, we’ve observed significant ETF inflows,…
