Matrixport: Slowdown in Stablecoin Inflows Drives Market into Consolidation Phase, Caution Advised on Bitcoin's Future Trend

BlockBeats News, March 11th, Matrixport released today's chart indicating that the slowing inflow of stablecoins is driving the cryptocurrency market into a consolidation phase, which may signal that caution is needed for Bitcoin's future trend. Data shows that the stablecoin minting indicator is highly correlated with Bitcoin's price movement. If this indicator fails to rebound, any upward trend in Bitcoin will struggle to sustain.

The analysis suggests that the current slowdown in stablecoin inflows may stem from two factors: stablecoin issuers have already built up sufficient inventory or overall market demand is decreasing. Regardless of the specific reasons, the cryptocurrency market has not yet seen a large-scale influx of new capital, which is a key factor in Bitcoin's consolidation.

Furthermore, this trend may be related to the hawkish tone of the December 2024 Federal Reserve meeting, which is expected to make institutional investors more cautious.