Stablecoin Outflows Not Necessarily Bullish Signs, BTC.top Founder Warns
The founder of mining pool BTC.top, Jiang Zhuoer, has cautioned against interpreting recent stablecoin outflows as a signal for a bull market. According to him, the reduction in stablecoin supply is not necessarily a precursor to a sustained rally.
Stablecoins like USDT and USDC have seen their market capitalization decline over the past month. Tether's USDT market cap fell from $184.2 billion to $183.1 billion, while USD Coin's market cap declined from $73.28 billion to $72.15 billion.
Jiang argues that these outflows may reflect a broader risk-off sentiment rather than a strategic repositioning for a bull run. He also noted that Bitcoin could potentially rise to between $68,000 and $70,000, but believes the downtrend would likely resume afterward.