🚨
$BTC WARNING: $7B Just Exited Stablecoins — Liquidity Risk Rising 🚨
For the first time this cycle, stablecoin liquidity is flashing a major red flag.
📉 In just one week, ERC-20 stablecoin supply dropped from $162B → $155B
That’s $7B gone — and this isn’t capital rotating within crypto.
💡 What this actually means
When stablecoin supply shrinks, it usually signals:
• Investors exiting to fiat
• Less sidelined capital waiting to buy dips
• Reduced fuel for sustained rallies
Stablecoins are burned when demand disappears.
Less supply = less dry powder = weaker upside.
📚 History check
A similar contraction in 2021 marked the shift into a broader bear phase — later accelerated by Terra. While this isn’t a repeat yet, the signal matters.
⚠️ The bigger concern
This decline isn’t isolated to Ethereum.
Supply contraction is appearing across multiple chains, hinting this could be structural, not just cyclical.
🩸 Liquidity is crypto’s lifeblood
And right now… it’s leaking.
📌 Key question:
Is this a temporary shakeout before rotation back into risk —
or the early sign of a deeper liquidity reset?
Let’s discuss 👇
#BTC #Stablecoins #CryptoLiquidity #Macro #OnChain