The market's mood can often be deciphered by observing the ebb and flow of stablecoins. These digital assets, designed to maintain a steady value, are sensitive market sentiment indicators. Recent data has shed light on the behavior of stablecoins, offering valuable insights into the state of the market.

Analyzing the Netflow data provided by CryptoQuant has revealed that there has been a decline in stablecoin liquidity, as outflows have outweighed inflows.