BEARISH 📉 : Bitcoin faces liquidity issues amid declining stablecoin inflows

Bitcoin is experiencing a decline attributed to liquidity issues rather than technical breakdowns. Key points include:

Korean analyst Ki Young Ju highlights the lack of fresh capital inflows, with Bitcoin's Realized Cap flatlining, suggesting no new money entering the market.
Sell-offs have been absorbed due to early holders taking profits, bolstered by ETFs and MSTR purchases. However, these inflows have dwindled recently.
The potential for a -70% crash depends on whether Strategy (MSTR) significantly changes its holdings strategy.
Market uncertainty persists with ongoing selling pressure and no clear bottom in sight, likely leading to sideways consolidation without new buyers.

Stablecoin Liquidity Concerns

Contributor Darkfost notes a sharp decline in stablecoin activity, reflecting lower crypto liquidity amid high uncertainty.
Since December, stablecoin market capitalization has declined, ending a trend of growth, impacting market risk-taking.
The last significant liquidity event was in October, with stablecoin netflows exceeding $9.7 billion, primarily on Binance, fueling Bitcoin's rally to an all-time high.
Recent months have seen net outflows of over $4 billion, indicating reduced market exposure.

At the time of reporting, BTC traded at $78,280.