Stablecoin Market Shrinks by Over $3 Billion Monthly, Bitcoin's Rebound Lacks Support

The stablecoin market has turned into a source of liquidity consumption since mid-May, with the average inflow over the past 30 days dropping from $3.2 billion to $2.65 billion, which is 31% lower than the annual average of $3.86 billion. The combined market value of USDT and USDC has shrunk by over $3 billion each month. Analysts point out that Bitcoin's 21% decline since mid-May is a direct consequence of the liquidity shortage. Currently, the market is losing liquidity on two fronts: a decrease in new stablecoin inflows and a contraction of the dollar base. Improvement signals require the 30-day average inflow to rise above the annual average, and the monthly change in market value to return to the zero axis and turn positive. Until then, any rebound in Bitcoin should be viewed as a technical correction rather than a trend reversal.

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