Declining stablecoin supply, tariff issues create headwinds for Bitcoin

A declining stablecoin supply and global trade uncertainty related to tariffs are acting as clear negative factors for Bitcoin's price, Cointelegraph reported. The outlet explained that the shock from tariffs is causing capital within the crypto market to shift toward precious metals and tokenized commodities. This shift reduces liquidity, adding downward pressure on Bitcoin's price. Furthermore, as stablecoins serve as a primary source of liquidity in the crypto market, the current stagnation in their supply suggests that capital is flowing out into fiat currency instead of being reinvested into crypto assets.