TechFlow News: On February 2, CryptoQuant analysis indicated that the cryptocurrency market is undergoing a severe liquidity shortage, in stark contrast to precious metals and equity markets, which continue attracting capital. After stablecoin total market capitalization grew by over $140 billion in 2023, it began declining in December.
In October, monthly average net stablecoin inflows reached $9.7 billion (of which $8.8 billion flowed into Binance), propelling Bitcoin to a new all-time high. However, conditions deteriorated sharply starting in November, with over $4 billion in net outflows—$3.1 billion of which originated from Binance. Analysts attribute this to rising investor risk aversion, particularly among late-market entrants withdrawing capital; some outflows also stem from exchanges adjusting stablecoin supply due to insufficient demand. This multi-month liquidity shortage has become a major pressure point for the Bitcoin market.
