Analyst warns against buying the dip amid stablecoin outflows

Bitcoin (BTC) is facing liquidity pressure as stablecoin funds have entered a net outflow phase, according to an analysis by Markus Thielen, an analyst at BIT (formerly Matrixport). He noted that while the monthly change in stablecoin supply had remained positive throughout the current cycle, an outflow is now underway, with the net outflow over the past 30 days reaching approximately $5 billion to $6 billion. Thielen explained that as fund inflows slow and volatility rises, the market's ability to be supported by liquidity has significantly weakened, creating a burden for both the cryptocurrency market and stablecoin issuers. He warned that a reversal in liquidity often triggers a shift in the market phase, making it highly risky to prematurely buy the dip. Thielen projected that the current sideways market could persist until the capital outflows stabilize.