Stablecoin Supply Collapse Sinks Bitcoin Buying Power

New data from CryptoQuant shows that stablecoin supply is shrinking, and it's having a significant impact on Bitcoin's price action. The combined supply of USDT and USDC has dropped by nearly $3 billion every month, reducing the buying power needed to support Bitcoin's recovery.

The 30-day average of stablecoin inflows has fallen from $3.2 billion in mid-May to around $2.65 billion, which is a 31% drop below their yearly average. This indicates that investors are pulling money out instead of bringing new capital into crypto exchanges.

According to CryptoQuant analyst Axel Adler Jr., 'When more stablecoins enter the market, buying power grows. When supply shrinks, demand also weakens.'