CryptoMe
🔥 Stablecoin Liquidity Is Rising Again! Is It Flowing Into Crypto Markets? ANSWER!
The FED ended QT in December. It said it would start the RMP and reinvest program to keep bank reserves at an ample level. It also said it would provide liquidity by buying short-term bills. In the 3.5 months since then, the Fed did what it said. Its short-term Treasury holdings increased. 1️⃣ In a similar way, stablecoin liquidity (USDT + USDC market cap) started to rise again in the middle of February, after falling from December. ⚠️ Stablecoin issuing companies usually mint and sell new stablecoins when demand increases. So, this indicator is also an "indirect measure" of demand. But sometimes, stablecoin companies mint new stablecoins only to keep them in inventory, and they do not send them into the market. ⁉️This creates a very important question: "Are these minted stablecoins entering the market, or not?" 2️⃣ From the Exchange Netflow data, we can see that the main trend is still downward. But in recent weeks, stablecoin inflows have started to increase. 3️⃣ In the same way, the main trend in the Exchange Reserve data is still downward. But there is also a small upward move. So, we can clearly see that some of these minted stablecoins have entered the market. ⁉️But is this inflow strong or weak? This also needs to be analyzed. 4️⃣ We can analyze this from the third chart. This data shows the ratio of the last 30 days of inflow to the last 1 year of inflow. What we see here is that these inflows are still weak compared to the 1-year average. ✅ The CLEAR RESULT is this: "The Fed is providing liquidity. Stablecoin liquidity is also increasing. There is also some flow and entry of this liquidity into the markets. But the strength of this entry is still weak. Because of this, price may move up and down and may see pullbacks in the short term. But even though these data still show weakness for now, they are promising for a more long-term investment view."