Everything is plunging! Bitcoin has fallen below the $69,000 mark, Ethereum has dropped under $2,000, and major altcoins are tumbling across the board 😱.#BTC
This downturn isn’t just a sell-off—the underlying liquidity is being drained. Glassnode data shows that stablecoin supply shrank by $14.2 billion in 30 days, returning to a pace of contraction last seen during the 2022 bear market. Stablecoins are the crypto market’s pool of ammunition. When large amounts of capital are converted and withdrawn, it means there are far fewer potential buyers.
Meanwhile, ETF redemptions are continuing. Spot Bitcoin ETFs have seen outflows for several days in a row, and Ethereum ETFs are also facing selling pressure. Only Morgan Stanley’s fund has bucked the trend, with a small inflow. With liquidity tightening, even a small sell order can trigger a sharp drop, and leveraged long positions opened near previous highs are being liquidated one after another.
The situation now is clear: cash is steadily leaving the market, institutions are pulling out too, and the market’s ability to absorb selling is weakening. For a meaningful rebound, two indicators need to turn around first: stablecoin growth and capital flows.$BTC
This downturn isn’t just a sell-off—the underlying liquidity is being drained. Glassnode data shows that stablecoin supply shrank by $14.2 billion in 30 days, returning to a pace of contraction last seen during the 2022 bear market. Stablecoins are the crypto market’s pool of ammunition. When large amounts of capital are converted and withdrawn, it means there are far fewer potential buyers.
Meanwhile, ETF redemptions are continuing. Spot Bitcoin ETFs have seen outflows for several days in a row, and Ethereum ETFs are also facing selling pressure. Only Morgan Stanley’s fund has bucked the trend, with a small inflow. With liquidity tightening, even a small sell order can trigger a sharp drop, and leveraged long positions opened near previous highs are being liquidated one after another.
The situation now is clear: cash is steadily leaving the market, institutions are pulling out too, and the market’s ability to absorb selling is weakening. For a meaningful rebound, two indicators need to turn around first: stablecoin growth and capital flows.$BTC
