Analysis: Stablecoin supply, U.S. Treasury yields more important than spot BTC ETF inflows

While the market continues to focus on the inflows of U.S. spot Bitcoin ETFs, stablecoin supply and U.S. Treasury yields may be more important indicators, CoinDesk reported, citing insights of multiple analysts. Markus Thielen, founder of crypto analyst 10X Research, noted that there would be a "meaningful correction" if stablecoin inflows slow down. Despite inflows into spot ETFs having somewhat decelerated in recent weeks, the supply of USDT and USDC has continued to grow, according to data from 10x Research. Additionally, Ilan Solot, co-head of digital assets at Marex's derivatives-focused division Marex Solutions, added that another source of potential downside volatility could be the "de-inversion" between the 10-year and 2-year U.S. Treasury yields. The spread currently sits at around -0.28 basis points, the smallest since January, Solot underscored, arguing that it is not a favorable environment for risky assets such as BTC.