Crypto market rebound may stall as stablecoin supply shrinks
A sharp drop in stablecoin supply is raising concerns that a crypto market recovery may lack the liquidity needed to gain significant momentum.
Summary
- Stablecoin market cap fell $2.24B in 10 days, reducing short-term crypto buying power
- Capital appears to be rotating out of crypto and into gold and silver at record highs
- On-chain analysts say liquidity remains sidelined, not gone, delaying but not ending the cycle
On-chain data shared by Santiment on Jan. 26 showed that the combined market capitalization of the 12 largest stablecoins declined by about $2.24 billion over the past 10 days.
During the same period, Bitcoin (BTC) fell roughly 8%, suggesting that…
