Over the past week, the market capitalization of stablecoins in the Ethereum network has fallen by $7 billion — from $162 billion to $155 billion. Analysts at CryptoQuant call this the first such contraction in the current cycle, and it's not just numbers.
👉 What does this mean in practice?
Stablecoins are liquidity waiting to enter the market. When they decrease, it signals that investors are not buying the dips, but rather withdrawing funds into fiat or transferring them into traditional assets.
📉 Why is this negative:
– less liquidity → weaker price support
– any downward impulse is amplified
– the market from correction can transition into a structural decline
CryptoQuant reminds: a similar dynamic was seen in 2021, and at that time it was an early signal of the beginning of a bear market for Bitcoin.
🔍 Context is important
While crypto is correcting, stock markets are maintaining an uptrend, and precious metals are rising. This creates a logical motivation for some capital to temporarily exit the crypto segment.
💭 Conclusion
The decline in the market capitalization of stablecoins is not a reason for panic, but a clear signal to be more cautious. In such moments, forecasts are less important than risk control and understanding where the money is now and where it is no longer.
❓How do you perceive this:
is this a temporary outflow before a new impulse or the beginning of a deeper cooling phase of the market? $BTC
