Stablecoin Supply Decline Signals Weak Foundation for Bitcoin Bull Market

Jiang Zhuoer, founder of the B.TOP mining pool, believes that Bitcoin's recent rally does not signal the start of a new bull market. According to him, current capital flows in the cryptocurrency market do not indicate a strong foundation for a sustained bull run.

Data shared by Zhuoer shows that the total market capitalization of stablecoins has decreased by approximately $2.23 billion over the past month. Specifically, Tether's (USDT) market capitalization fell from $184.2 billion to $183.1 billion, while USD Coin's (USDC) market capitalization dropped from $73.28 billion to $72.15 billion.

Zhuoer points out that the decline in stablecoin supply suggests weak new capital inflows into the market and unfavorable funding conditions for a bull market. He predicts that Bitcoin could experience a short-term rebound, potentially reaching a price of $68,000-$70,000, but warns that this may be followed by 'one last drop' as short positions are liquidated.