Analysis: Slowing Stablecoin Inflows May Curb Strong Bitcoin Rebound
Summary
- CryptoQuant contributor Sunny Mom said market inflow momentum is weakening, citing the 30-day growth rate of Bitcoin and stablecoin market capitalization.
- He said the negative market-cap growth rates for USDC and USDT on the Ethereum network signal a slowdown in fresh capital inflows.
- He said shrinking buying capital flowing into the market could make a strong Bitcoin rally difficult, and the current rebound is likely to remain a technical bounce.
Forecast Trend Report by Period
Bitcoin (BTC) has been trading sideways near $60,000, and a strong rally may be hard to sustain as fresh money flowing into the crypto market slows, according to a CryptoQuant analysis.
On June 29, CryptoQuant contributor Sunny Mom wrote that momentum from stablecoin inflows into the market has been weakening steadily, citing the 30-day growth rate of stablecoin market capitalization.
The analysis showed that USDC's market-cap growth rate has already turned negative. On-chain data for USDT on the Ethereum network shows the same pattern.
Sunny Mom interpreted that as a sign of slowing fresh capital inflows. A negative growth rate in stablecoin market capitalization suggests investors are staying on the sidelines rather than moving cash into the crypto market or issuing new stablecoins.
With less buying capital entering the market, prices may lack the momentum needed to extend gains. The current rebound is more likely to be a technical bounce than the start of a new uptrend, he wrote.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.