📉 Sharp decline in stablecoin reserves on exchanges — a warning sign for the crypto market?

The chart from CryptoQuant shows the largest simultaneous decrease in stablecoin reserves (#erc20 ) on exchanges in recent months.

What does this mean?

💡 Historically:

Stablecoins are most often brought to exchanges for purchasing cryptocurrencies, especially $BTC and $ETH

Their increase on balances is a sign of potential demand.

👉 On the other hand, a sharp outflow may indicate:

📉 a decrease in investment interest;

📤 withdrawal of funds in anticipation of a correction;

🧯 a shift to a risk-off mode.

Current situation:

BTC is still holding above $114,000, but the decrease in the liquid "buffer" in the form of stablecoins creates tension.

If the trend continues, it may put pressure on prices in the short term.