NYDIG: Key Bitcoin rally drivers now fueling price decline

Bitcoin's recent drop to $84,000 was driven more by market dynamics than investor sentiment, according to an analysis by crypto lending firm New York Digital Investment Group (NYDIG). NYDIG explained that the key drivers behind the 2024-2025 Bitcoin rally are now contributing to its price decline. The firm noted that spot BTC ETFs have recorded five consecutive trading days of net outflows, a stark contrast to the massive inflows seen in the first half of the year. Furthermore, the total supply of stablecoins has decreased for the first time in months. NYDIG highlighted that Ethena's USDe, in particular, has lost nearly half of its circulating supply since a liquidation event on Oct. 10, suggesting a rapid exit of capital from the market. Corporate Digital Asset Treasury (DAT) strategies have also recently lost momentum, the firm added.