Today, during early Asian trading hours, Bitcoin (BTC) slipped below $90,000 once again.
The most surprising thing is that this decline came immediately after the Federal Reserve's rate cut โ when normally a bounce is seen in the crypto market.
But this time the market showed a reverse move.
Therefore, I checked the data in detailโฆ and one thing became clear to me:
๐ฅ Bitcoin Needs the Most Liquidity to Be Bullish
Today, the main issue for BTC is not price, but a shortage of liquidity โ especially of stablecoins.
๐ Impact of the drop in stablecoin inflows.
Inflows in August: $158B
Around today: ~$76B
โก๏ธ That means a direct drop of 50%.
The 90-day average has slid from $130B to $118B.
This is the liquidity that drives BTC up.
And when fresh capital is not coming into the market, the rally cannot sustain.
๐ง Reason for BTC's weak price action.
What I am observing:
Demand has decreased.
New buyers are not entering the market.
The small bounces are due to reduced selling pressure โ not due to fresh buying.
This simply means:
Until fresh stablecoin liquidity comes into the market, BTC will not start a strong bullish trend.
๐ฆ Stablecoins are being mintedโฆ so where is the liquidity going?
Yes, the market cap of USDT and USDC is increasing.
but the majority supply is being used:
Cross-border payments
Derivatives exchanges
Regional flows (Asia is the most active)
This means that stablecoins are being created, but they are not reaching the BTC spot market.
#IMF #BinanceAlphaAlert #BTCanalysis
