Analyst: Bear market to persist while BTC inflows, stablecoin outflows continue

An on-chain analyst has argued that the current bear market will likely continue until the large-scale inflow of Bitcoin (BTC) to exchanges and the outflow of stablecoins are reversed. In a blog post, analyst Axel Adler Jr. noted that the net flow of BTC into exchanges turned positive around May 18, peaking at approximately 167,000 BTC early this month and currently standing at around 114,000 BTC. He interpreted this as a sign of continuous selling by holders. Adler also pointed out that during the same period, the 30-day moving average of net stablecoin inflows, which was between $40 million and $90 million in early May, has now reversed to approximately -$105 million. This shift suggests that liquidity is draining from the market and demand is weakening. He stated that these two trends coincide with Bitcoin's 22% drop from its May high. Adler concluded that unless these movements reverse simultaneously, any market rebound will be merely a technical bounce.