TechFlow reports that on March 11, Matrixport released a chart indicating that slowing stablecoin inflows are pushing the crypto market into a consolidation phase, suggesting a cautious outlook for Bitcoin's future price movement. Data shows a strong correlation between stablecoin minting metrics and Bitcoin's price trend; if this metric fails to recover, any upward move in Bitcoin will likely be unsustainable.
The analysis suggests the current slowdown in stablecoin inflows may stem from two factors: stablecoin issuers having already built sufficient inventory, or an overall decline in market demand. Regardless of the specific reason, the crypto market has not yet seen significant new capital inflows, which remains a key factor behind Bitcoin's consolidation.
Additionally, this trend may be linked to the hawkish tone expected at the Federal Reserve's December 2024 meeting, which could make institutional investors more cautious.
