Stablecoin Outflows Signal Capital Exit as Bitcoin Trades Flat
Stablecoin supply has decreased by approximately $2.24 billion over the past 10 days, corresponding with Bitcoin’s fall from $95,000 to about $88,500. Although Bitcoin recovered slightly with a 1.4% daily gain, it remains down 4.2% over the week. The declining stablecoin market cap indicates that investors are moving funds out of crypto entirely, converting to fiat rather than holding stablecoins for potential reinvestment. Bitcoin’s aggregated open interest remains largely unchanged, signaling little fresh speculation or leverage entering the market. This capital outflow aligns with Bitcoin’s typical bearish performance during periods of macroeconomic uncertainty, as investors exhibit a preference for established safe havens like gold, which recently reached a new all-time high of $5,100 per ounce. Gold’s long-standing credibility and low volatility continue to attract older, wealthier investors, while Bitcoin is still seen by many as volatile and high-risk, limiting its appeal as a safe-haven during global instability.
