Analyst: Four factors explain crypto's lag behind gold and stocks

The cryptocurrency market is failing to match the recent gains of gold and the U.S. stock market due to four key factors, according to an analysis by XWIN Research Japan, a contributor to CryptoQuant. The research points to a preference for safe-haven assets following U.S. interest rate cuts, a lack of stablecoin liquidity, expanding leverage in the derivatives market, and the conclusion of the Bitcoin halving cycle. The analysis explains that in the initial phase of rate cuts, institutional capital tends to concentrate on highly liquid assets like stocks and gold. Funds are expected to flow into altcoins only when investor risk appetite increases. Furthermore, while the total stablecoin supply reached an all-time high of $308 billion this month, stablecoin balances on exchanges have continued to decrease, reflecting a broader risk-averse sentiment among investors.