CandleFocus

Stalled Stablecoin Supply Casts Doubt on BTC's Bullish Recovery as U.S. Inflation Report Looms

Bitcoin's recovery from its recent dip below $90,000 is showing bullish prospects, but there is doubt about the sustainability of these gains. The supply of major stablecoins has stalled, indicating a lack of fresh capital inflows into the market. This slowdown in liquidity contrasts with the expansion of stablecoin liquidity seen during previous rallies. The impending release of U.S. inflation data on Thursday could cause significant downside volatility if it comes in higher than expected. A strong inflation report could reinforce concerns about the central bank being less aggressive in cutting interest rates, which contributed to Monday's dip in BTC.

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