BTC recovery falters amid shrinking liquidity, analyst says

The recent slowdown in Bitcoin's recovery stems from a contraction in new liquidity, according to an analysis by CryptoQuant contributor Darkfost. The analyst noted that the volume of stablecoins flowing into exchanges fell by 50%, from $158 billion in August to $76 billion, while the 90-day average inflow also decreased from $130 billion to $118 billion. Darkfost argued this indicates that BTC is facing slowing demand and lacks the strength to absorb selling pressure. The recent minor rebound was attributed to an easing of this pressure rather than an increase in buying, with the analyst adding that a new influx of liquidity is essential for BTC to resume a strong upward trend.