Inflows of New Liquidity Have Dried Up: Crypto Daybook Americas
New liquidity inflows into crypto markets have slowed across stablecoins, ETFs, and treasuries, forcing the market into a "self-funded mode."Summary
New capital inflows into the crypto ecosystem, sourced from stablecoins, ETFs, and digital asset treasuries (DATs), have significantly dried up over recent months, leading Wintermute to describe the market as operating in a "self-funded mode" where liquidity merely shifts between tokens. This lack of external fiat inflow contrasts with rising M2 money supply in major economies, which is reportedly focused on technology and infrastructure spending rather than crypto. Traders are advised to watch Bitcoin's interaction with its 50-week simple moving average for signals of a potential rebound toward new highs, especially if rising inflation, as described by Ray Dalio, sustains demand for gold-like assets like Bitcoin. In other news, Coinbase urged the U.S. Treasury regarding the GENIUS stablecoin act rules, and the dollar index rally is nearing a resistance point that could pressure crypto.
(Source：CoinDesk)