Glassnode says stablecoin supply fell by $14.2B, reducing fuel for a market rebound

Glassnode said in a weekly report that stablecoin supply shrank by $14.2 billion over the past 30 days, marking the fastest contraction since June 2022 and indicating that the fuel for a broader crypto market rally is drying up. The report said Bitcoin is undergoing a correction with little fresh capital entering the market, leaving few near-term factors to support a bullish outlook. It added that a large share of the excessive leveraged positions clustered around current price levels has already been liquidated, while some whale wallet groups have shown signs of accumulation. For a rebound, Glassnode said it is important for Bitcoin to reclaim $75,600, the realized price for short-term holders, or the average on-chain acquisition cost. On the downside, the report said a sustained move below $73,000 could lead to a prolonged consolidation phase, while a weekly close under $58,500 would invalidate the rebound scenario.