Alarm signals in the cryptocurrency market 😱
In recent weeks, the market capitalization of stablecoins is falling at a record pace - in the Ethereum network alone, the outflow last week amounted to $7 billion. This is all related to the outflow of liquidity into traditional safe assets - stablecoins are being converted into physical gold/silver or tokenized RWA like $PAXG 🤷🏻
What is interesting here is that even Tether is buying physical gold at record rates and volumes (the reserve amounts to 520,089.35 troy ounces) to back its Tether Gold (XAUt), whose capitalization exceeded $2.2 billion.
A negative signal is that liquidity is flowing out of the market, unfortunately, not only into crypto RWA assets but also into real physical assets, leaving the crypto market.
Will there be a return of liquidity after the storm subsides - it is hard to predict, as this storm will last, at least, until the USA stabilizes its approach to external and internal policies.
Considering these factors, analysts speak of a future further decline $BTC which is currently reacting solely to macroeconomic factors and is too speculative and volatile, and the market may transition from a correction phase to a structural decline.
