Stablecoin Supply Stagnation Hinders Bitcoin's Recovery

A recent slowdown in stablecoin supply has hindered Bitcoin's ability to recover from its current downturn. According to Matrixport analysts, the stagnation in stablecoin supply has become a noticeable obstacle for Bitcoin and the broader digital ecosystem.

The experts noted that stablecoins are the primary channel of liquidity in digital assets, and stagnation often means that capital goes back into fiat rather than staying in the crypto market. Since the start of 2026, the supply of stablecoins has shrunk by $5.6 billion, from $159 billion to $153.4 billion.

Matrixport analysts warn that if outflows persist, Bitcoin will continue to face a liquidity shortfall. The long-awaited passage of the market-structure law (Clarity Act) is unlikely to revive the sector overnight, as it will take real demand and fresh inflows, not merely regulatory relief.